I don't even know what I will be doing in 5 years; anyone that thinks they know where any company will be in 5 years is deluding themselves. IMO of course.
I was really just posing as a random question. But the premise would be if you were on a island or sailboat and took 5 years off and never looked at the price. Which will be worth more in 5 years?
Goog. Much less risk. They are the next tech leader in their ever more important arena of search. GM could pay off huge if it avoids bankruptcy but that is a big if and I do not think that they have hit bottom yet.
How does one compare Google to GM? GM is sadly now a healthcare company, a union strong-armed outrageous benefits/ratio of work performed company, that 'happens' to make cars no one really wants anymore... The fundamentals don't work. We'll see that unfold through TA as traders decide the price... Hate to see it as I'm a true fan of the early 1950's GM products up to 1972. Those were TRUE GM cars imo. Now GM has priced themselves out of the market with "plasticly" feeling cars that 'typically' don't hold up vs. the Subaru's, Honda's, etc., which are priced very closely. The Subaru and Honda also hold a higher ACV (Actual Cash Value, i.e., book value.) So, buying a typical GM product= getting much less bang for your buck in 2010. The quality isn't there to justify the price of a new GM vehicle... With Google doing 'what Google does," there's no comparison. Long Google Short GM (imo)
Let's rephrase the question. For the sake of arguement, which one is more likely to double or triple?
November 19, 2010 SouthAmerica: The "GM" IPO shows that we still have a lot of "SUCKERS" out there. God bless those Fools. .
Or we have some damn good salespeople. Or people have too much money. (C'mon, if people respected money none of this would have happened). ps On the flip side, limited access to the IPO for the small investor may have been a good thing.
I like looking back at these old threads. So GM went to $0 and GOOG went up 50%, despite being probably "overvalued" 5 years ago. Just shows how quality growth stocks can simply grow their way out of overvaluation over the long-term. However GOOG did have a great "big dip" to buy in 2008. For the next 5 years, IMO GOOG will double or triple again.