After 50 years of buying businesses I have become a huge proponent of buying manufacturing businesses over any and every other kind of business out there -- especially service businesses. The main reason is because they are safe (from an investment point of view), have little overhead and need almost no attention, since they basically "run themselves."

But many times I am asked if there are certain industries or types of manufacturing businesses which I would stay away from. The answer is yes. I would definitely urge anyone to stay clear of buying anything in the automobile industry.

Why?

Well, mainly because the automobile industry has exessive peaks and valleys.

What these auto companies do is they give you as thin a margin as possible and as soon as you get used to it, maybe make a slim profit one year, they