Still lots of growth ahead

Article Excerpt

Japanese automakers Toyota and Honda have been terrific performers for us since we first recommended them in June 2004. Toyota is up 90%, while Honda has gained 71%. Both continue to do a good job anticipating new trends in the auto industry, such as hybrid-engine cars, and creating products that help them stay ahead of competitors. The recent jump in the value of the Japanese yen could increase the cost of their products in the United States. But both companies are expanding their North American operations, which cuts their currency risk. Both are also doing a good job keeping their operating costs down. We still see both Toyota and Honda as buys for conservative investors. But you should limit your investments in overseas stocks to, say, 10% of your total portfolio. TOYOTA MOTOR CORP. ADRs $129 (New York symbol TM; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.8 billion; Market cap: $232.2 billion; WSSF Rating: Above average) is the world’s second-largest…