R.I.P. General Motors (1931-2006)

The returns are not in until you get the check. So the appropriate values
are the price when you bought the stock and value now. And, now value is
only 125% above what you paid for it, not good for a 45-year investment.

No, I didn't forget about the years with double digit returns. Or the years
with negative returns. And neither did Morningstar in their article.

Overall, the return on the money invested in GM was a lot worse than the
return on the money invested in Ford or IBM.

Toyota's figures are available only for the last 14 years. In those fourteen
years, Toyota's stock went up over 200%, while GM's went down.

Be grateful that you didn't invest that $45,000 in GM, as well.

You claimed that you had "excellent dividends." Your overall return,
including dividends was rather lousy. That's the part that counts.

Jeff

 

Look on the bright side, Jason. Mike can use the capital losses to offset
the capital gains he makes on property.

For me, I don't think that GM will run out of money. I think they will
become profitable again. However, I think there are better investments.

If Mike doesn't, that's his problem.

Jeff

 

Millions of buyers must be concerned with how long a truck will last and how
well it works, because the F150 has been the best selling vehicle for 29
years. Like I said the Ridgeline is not much of a truck, an F150 will
tow twice as much, 10,000 LB.


mike hunt

 

(...)

The problem is that with the union contracts, even if they close factories,
they don't save too much because they still have to pay their workers. And
they still have to pay pensions and health care for their retirees.

Plus, GM is making more money on their trucks than cars. With the price of
gas, people will be buying more cars in the future.

So for them to turn around and start making a profit in the near future is a
big problem.

If and when GM will start making money or go into bankruptcy is anyone's
guess. We could argue for months when GM will go bankrupt until it happens
(if it happens).

So would I. There are pleny of good things to invest in. Like energy stucks.
People are going to need more and more energy for years to come. There are
great techonlogy stocks. There are even good manufacturing stocks. GM is not
one of them.

Jeff

 

Why would anybody even consider the opinions of the editors of MT? These
are the guys that think the FWD unibody Mini van derived vehicle is 'TRUCK
of the year.' . Even Tacoma owners are laughing at that. LOL


mike hunt

 

There is a lot more to a truck than looks Actually domestics do make cars
and mini vans that have as much reliability and quality as their full sized
pickups. Except to the larger trucks the cars and minivan use the same
engines and trannys, an other related parts. I have yet to own a domestic
that had problems, no different then the imports I have owned.


mike hunt

 

That is just too funny. Mike said it was a sedan dressed up to be a truck
and you just proved it.

 

You might want to look at the figure again. That is Gross Combination Weight
Rating not towing capacity. The Honda has a similar rating (9600 lbs truck
weight empty + towing capacity), although many of the F150 trucks do exceed
the Honda capacity.

Jeff

 

The money magazines are not bullish on GM, either.

However, in a diversified portfolio, considering its relatively high
dividend yield, it is not that bad of an investment. I guess it is worth the
risk that it will come back.

Jeff

 

You got to be kidding, The share price more than doubled every time it split
and GM has always paid a dividend, including the last quarter of 2005. GM
paid more than did my oil stocks over the years.


mike hunt

 

The Ridigeline has some clever ideas, like the lockable storage compartment
in the bed and the 2-way tailgate. With an IRS, it should ride nicely and
it's probably a good vehicle for someone who only occasionally uses the bed
for light cargo. I doubt if it will be as popular with people who use a
truck for work or routine towing.

 

I would not stand under that Freightliner, that was 'towed' up in the air in
the Ford TV ad if it was being held up by a Ridgeline, if I were you if that
is what you believe. LOL


mike hunt

 

What if I had listened to the soothsayers and sold when Chrysler was down to
$1 a share ? LOL


Mike hunt

 

The value of GM in 1962 was around $20, about the same as it is now,
accounting for the split in the 80s. The first split you talk about was
before the data are available in 1962, so it was in 1960 or 1961.

http://finance.yahoo.com/q/bc?s=GM&t=my

The annual dividend was in the neighborhood of a 2 or 3 dollars a year,
making a dividend yield around 5% each year. The yield varied from year to
year.

The Morningstar article said that you would have been better off investing
in your money in a savings account, but I think that is not true. Overall,
GM has not been a good investment, however.

http://finance.yahoo.com/q/hp?s=GM&a=00&b=2&c=1962&d=03&e=29&f=2006&g=v&z=66&y=132

Jeff

 

The same could be said of many companies. And many of those companies, like
Enron and Eastern Airlines, are not longer worth much.

 

No, what I believe is that your figure was misleading and you can't even
admit when you are wrong.

And that I would not stand under the Fireghliner, regardless of what held it
up, even a Ford.

Jeff

 

BUT have you looked at Der Mopar today? LOL


mike hunt

 

Changing the topic again, are we?

Jeff

 

I would if I were but I'm not an F150 will tow 10,000 LB.


mike hunt

 

Mike,
Good point. Mercedes purchased Chrysler. However, another car company
might NOT buy GM. There have been other car companies that have gone out
of business and all of the people that owned stock in those companies lost
all of their money. Do you want to loose money?
Does anyone remember the names of the car companies that have gone out of
business? If so, please list them. Which company made Hudson cars? I also
remember seeing a movie about a car company that went out of
business--they made cars that had three headlights--one of the headlights
was mounted in the center of the hood. What was the name of that car?
Jason