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O’Reilly Automotive Inc (ORLY), Advance Auto Parts, Inc. (AAP), AutoZone, Inc. (AZO): How I Used Peter Lynch to Make Money, and How You Can, Too

It’s been a great move so far, and I see tons of potential left in Ford and its rival General Motors Company (NYSE:GM). Ford escaped a bailout because of excellent vision and management from industry-leading CEO Alan Mulally. Ford’s crosstown rivals weren’t so lucky and would suffer through bankruptcy and a government bailout. The lessons Detroit’s Big Three would learn from their worst chapter in history would be vital to their becoming valid investments once again — and they have.

Bottom line
As the economy improves, we’re seeing U.S. vehicle sales increase to levels not seen since before the recession hit. Detroit’s Big Three have emerged from the recession much leaner, efficient, and, most importantly — profitable. Now both Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM) are producing valuable, fuel-efficient, quality vehicles that people actually want to buy. That was evident these past two weeks, as both companies posted beats on first-quarter earnings and are optimistic for the future.

Just recently I felt comfortable enough to put some of my hard-earned cash into General Motors Company (NYSE:GM), and I’m hoping my story continues to be my best investing decision. If you follow Lynch’s simple advice and invest in what you know, that alone will make you a better investor. You can also protect your portfolio by having some low-beta stocks during uncertain times.

Did any of you have investment wins during the recession? I’m curious to hear about other stocks that may have done well. Let me know in the comments below.

The article How I Used Peter Lynch to Make Money, and How You Can, Too originally appeared on and is written by Daniel Miller.

Fool contributor Daniel Miller owns shares of Ford and General Motors. The Motley Fool recommends Ford and General Motors and owns shares of Ford and O’Reilly Automotive.

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