Who would buy Ford or GM as a investment?

Discussion in 'Economics' started by pavlov0032, Mar 20, 2009.

  1. I can understand buying ford or gm for trading - but who in the right mind would buy them as an investment??

    they have not made any money ever since the inception if you combine all the bailout money and profits they made its still a wishy wash.
  2. bettles


    I presently have 2-3% of my stock trading portfolio in F. I bought at 2 (prior to the low). I'm looking to buy more and have a limit order in at 2 again to double my position.

    Of the 3 big car companies (in my opinion), F has the best chance of surviving. They may not even need any help from the government to do so. Some day, when the economy recovers (be it 2 years from now or 10), F is likely to be at least 20. I agree there is some chance they will go broke, but not a 10:1 chance and there is certainly a fair chance of the price increasing 10:1 long term.

    So while not a sure thing, I think it is a prudent speculation. I do treat it as speculation though, and I generally limit speculation to about 10% of my money. And, I might agree with you more on GM (my thoughts are that they will still be around 10 years from now too, but shareholder equity may be wiped out in a reorganization first).


  3. So why not speculate with healthy money-making companies? Are there any left?

    not only you gambling that their stock price will go up, but also on SURVIVAL of these companies — too many adds against investor.
  4. They are extremely speculative investments.

    It's still acceptable to have such speculative investments from time to time, in your portfolio, as long as they are only a very small part of your capital.
  5. cubical


    if you were going to invest in GM you should invest in their ETNs rather than the common. Same goes for F, but F is in less trouble than GM so the stock might have some upside.