Be glad you are not GM or Chrysler-Maybe!

My nephew Scott handles my investments for me. They are meager but important to me and my wife. He sent me an e-mail today that said "Aren't you glad you did not buy GM"! A few days ago I had asked his advice about GM because I am a bottom fisher of sorts right now. He said "No" then and I am glad. Our entire portfolio consists of stocks that reached their lowest price ever between January and March of this year. So far it has paid off. I guess the long term will tell. My oldest Son does not call it "investing" he calls it "gambling".

Anyway, all automotive stocks plummeted today based on the announcement that GM was issuing 300 million new shares of stock to fund their debt to the UAW and Chrysler had banks, that it expected to follow the lead of their big banks, that demanded a majority stake in the car maker now in bankruptcy. It is such a shame caused not only by the greed I have written about here before, but because of their incompetency at the top and fear of doing the right and hard things last year and years before. Ford made some of those hard decisions last year and the year before when they were in trouble and everyone knew about it. GM and Chrysler were in trouble too but were not talking or taking action.

So why am I saying this other than to rant. Because you as a small and/or family owned business person should be doing that right now. If things are bad, do what you have to. The pain will not get easier. If things are going well now, plan, plan, and do more planning and saving. Really, not only could things get bad they might stay good and that may be an even bigger problem. Seek some advice and counsel from competent people such as I am. It is more important than ever to do the right thing for you and your employees!

What do you think?