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OAKBX Manager Commentary March 31, 2014 - GM & SNL

hank
edited April 2014 in Fund Discussions
Managers address the fund's sizable (3%) stake in GM stock:
"GM is one laggard worth touching on, given its size in the portfolio ..... While we obviously aren’t pleased (with developments), we believe GM’s low valuation (its shares trade at just seven times consensus estimates for next year’s earnings) more than compensates for these issues, and we remain comfortable with it being a top holding of the Fund."
http://www.oakmark.com/Commentary/Equity-Income/Oakmark-Equity-and-Income-Fund-First-Quarter-2014.htm

U.S. Fines GM for Not Answering Recall Questions "The NHTSA said the automaker had not responded to over a third of its questions by the April 3 deadline." http://www.reuters.com/article/2014/04/08/us-gm-recall-nhtsa-idUSBREA3721420140408

SNL lampoons GM & CEO Mary Barra:
http://www.mlive.com/business/detroit/index.ssf/2014/04/gm_ceo_mary_barra_gets_saturda.html
(SNL link at end of article.)

Since OAKBX is one of my largest holdings, none of this is very funny to me. (But - SNL is always funny:-):-)

Comments

  • TedTed
    @hank: I held GMAC bonds when they were almost worthless, and got all of my money back + accrued interest, and now hold a position in GM common stock. Great minds like mine and the Oakmark manager think alike
  • hank
    edited April 2014
    Ted, I hope you're right. But, first you need product. I've driven the 2014 Fusion and the 2014 Malibu. IMHO, it's not close. Fusion's a superior product (although Malibu gets better milage).

    Regards
  • [Deleted User]
    Hank, please don't take this the wrong way, but when you start questioning your managers investments then maybe it's time to be your own fund manager.

    On another topic. Saw today GM had the best crash test ratings of mid sized SUV's. Honda was the worst. Let me know when the media and mag's start telling everyone GM bested Honda in something. When I see that on the news and in consumer reports I might just buy you one.:)
  • hank
    edited June 2014
    Hi clemg64! Don't take my grumbling too seriously:-) I'd be an awful fund manager.

    Good point on the crash tests. Regards
  • [Deleted User]
    Hank, yeah I know what you're saying. I look under the hood a lot and often wonder what the manager see's sometimes. I'd be a horrible manager too. One of my funds holds 9.2% of IBM and another fund holds 9.9% in HP. Those aren't companies I could envision buying, but I trust they know what they're doing:)
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