As noted back in October 2008, I bought a few shares of General Motors Corporation (NYSE:GM) for what I considered a small cost (30 shares at $5 a share). Today it looks like that opportunity is in the toilet (but I’m not whining…my overall portfolio is diverse and just fine).

As I’ve watched the stock price go down and down and down and then flushed, it became clear quickly that there’s no way I was investing any more money into it. If I made it out on the positive side, great, but I wasn’t holding my breath.  The up and down movements (in “penny stock” territory) confused me. My gut was to just observe and when/if the stock is wiped out, use the loss for what it is.

And regarding the “new” company, don’t get me started on that. Bottom line, I think that the powers that be in Washington D.C. are a bunch of morons who in 9-months have increased our deficit so drastically that I bet my great-great grand-children will still be paying for it. But that’s another topic for a different blog.

If I were to add any auto company back into my portfolio, it’d be Ford (which I have held in the past) due to sticking to their guns and not taking a “bailout”, but at this point I’m still just a little hesitant. Luckily, as I said, the portfolio is diverse & I cannot stress enough how important that is.

When: Wednesday, October 9th, 2008

Why: General Motors makes the best American sports car, the Chevrolet Corvette.  The Corvette is an awesome car (minus a few of the 1980’s bodies) that we get to see a lot of here in Indianapolis as the official pace car of the Indy 500.  The past 12 Indy 500 pace cars have all been GM products, 7 of which were the Corvette.  Sure, I have other reasons as well, but the Corvette is reason enough.

Personal Overview: General Motors Corporation stock has “tanked” in recent months (currently down 84.25% in the past year) and that GM is in serious need of a new business and marketing strategy. For an older company, I don’t think that is entirely a bad thing.  Difficult times breed innovation which is just what the American auto industry needs.

There are also rumors flying that they may combine with Chrysler, announcing a plan as early as this coming week.  I’m not sure if that’s a good idea or not, but I must say that I love the Chrysler Town & Country minivan and the Dodge Viper is a pretty cool American sports car too.

Personal Expectations: I’m planning to hold onto this one for a while and then see what unfolds.  While some consider this “risky” right now, I’m looking at it as more of an opportunity.  If the worse thing happens, I’m not out a whole lot since I got in on the low side.  But if the company and the economy get turned around in the next decade, I’m going to be a happy guy when I remember when I bought in.  But in the near future, say a year or two, I’d like to see some dividens happening again, as the recent $0.25 – $0.50 quarterly dividends per share aren’t too shabby.