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Part of GM's Repair Kit - A Very Bloodied Ax
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Visitor support makes this site possible. Please shop at Amazon.com via Auto on Info. Thank you. Investment Lit Purchased by Visitors via Auto on Info Security Analysis: The Classic 1940 Edition The Buffettology Workbook: Value Investing The Warren Buffett Way The Intelligent Investor: The Definitive Book On Value Investing, Revised Edition The Interpretation of Financial Statements Auto Lit Consumer Reports magazine Consumer Reports Used Car Buying Guide 2005 Men's Watches Men's Watches by Cartier To view more men's watches, icons, and search phrases, click here. Auto on Info April 2005
Part of GM's Repair Kit - A Very Bloodied Ax
By James B. Bleeker
At the outset, something should be said: Neither General Motors Corporation's chief executive officer nor its board of directors can be faulted for failing to anticipate the unrelenting and recently accelerated shift by consumers to the quality products of the Top Four - Toyota Motor Corporation, Honda Motor Company, the Subaru division of Fuji Heavy Industries, Ltd., and Nissan Motor Company. It seems to have come as a surprise to nearly all, including site manager. (See "A Proof That the House Sparrow Is of a Higher Mental Order Than the Bottom Two Thirds of the U.S. Human Population," 2001 Annual Review, January 2001.) Indeed, site manager has not encountered one remark in the print media stating or suggesting that an auto analyst had foreseen a consumer shift toward quality, or claimed to have predicted it.
Nonetheless, there's a seeming trifle that roars and strips. On March 22, 2005, the Detroit News reported that GM's chief executive officer had purchased 50,000 shares of GM stock. This act by GM's CEO likely violates two fundamental principles of sound investment.
1. Never try to predict the bottom price of a stock. During Peter Lynch's evangelical days, he preached: When you ask yourself, "How low can a stock go?" you answer yourself, "To zero."
2. Never invest in a company's stock until there is solid evidence of improved prospects, with some uptick in business. Without it, there's only hope, something best left for slot machines.
Hence, site manager concludes, this fellow should not hold the authority to allocate other people's - here, shareholders' - assets, nor should he have been put into a position empowering and requiring him to do so. In short, he, and every board member voting for his ascendancy to the CEO office, should go.
Source for stock purchase info: "CEO Boosts GM with $1.5 Million Buy," Detroit News, March 22, 2005, at http://www.detnews.com/2005/autosinsider/0503/22/A01-125040.htm
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Search Engine Directory This table is provided primarily to give the visitor quick access to those search engines that site manager has found to be more consistently useful for information acquisition. For descriptions, strengths, weaknesses, comments, and other names and formats by which the following search engines are known, go to Search Engine Directory Page. Search Engines Exalead Yahoo! Ask.com Info.com DMOZ Site manager estimates that the Exalead search engine is presently 30 to 35 times better than Google, but is only 8% as good as Google was prior to the advent of large expenditures on internet advertising by the major automobile manufacturers. Site manager estimates that the Yahoo search engine is presently 15 to 20 times better than Google, but is only 7% as good as Google was prior to the advent of large expenditures on internet advertising by the major automobile manufacturers. Site manager estimates that the Ask search engine is presently 5 to 10 times better than Google, but is only 6% as good as Google was prior to the advent of large expenditures on internet advertising by the major automobile manufacturers. Info is a metasearch engine that scans 14 search engines for results. Metasearch engines are modestly successful in weeding out the junk within the first 10 entries of a search results page, but is, of course, of no help in inserting what is missing. DMOZ is the product of thousands of volunteers who select out the better sites that the web has to offer; consequently, there is an assurance of greater quality than the mean of what a search engine offers within the first 10 results of a phrase search. Metasearch Engine
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Auto on Info Standings for Selected Search Phrases on Auto News
Site Rank in Results for Search Phrase Car Quality News Site Rank in Results for Search Phrase Auto Quality News Site Rank in Results for Search Phrase Auto News First by Yahoo! Search from 5,230,000 results First by Yahoo! Search from 3,510,000 results Thirty-ninth by Yahoo! Search from 37,600,000 results First by MSN Search from 1,110,112 results First by MSN Search from 716,283 results Fifteenth by MSN Search from 7,682,302 results Fifteenth by Google from 3,730,000 results Tenth by Google from 2,400,000 results Eightieth by Google from 7,450,000 results Standings are as of 14/03/2004.
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