Through The FLY's Eyes: General Motors
Legendary Investor Buys Big Stake In General Motors
Southeastern Asset Management, led by hugely successful investor Mason Hawkins, has purchased a big stake in General Motors (GM). He is bellying-up to the table with Kirk Kerkorian on this turnaround stock.
Hawkins, who is often compared to Buffett, is stepping into an industry that Buffett openly trashed at his recent annual shareholders meeting. Now Kerkorian and Hawkins own big stakes in a stock that has done little to nothing for shareholders since the mid-1960s.
The big bet with GM is market share or the rate of decline in market share. If GM can just keep its market share, the company should be able to generate a ton of cash for shareholders. However, GM's management has run this company for employees and bondholders for decades, with little concern for shareholders and customers. Are they going to change this time? Most likely not, but a big rally for the stock could be ahead in the next few years as cost cuts take hold.