General Motors joy ride

David Berman writes in The Globe and Mail about General Motors (GM/NYSE). An interesting bit:

For example, Southeastern Asset Management firmly believes the shares are worth more than $60, even after they factor in declining sales expectations for 2008, record-high oil prices and mortgage-related writedowns at GM's financing unit, GMAC - which is the sort of stuff that gives many other investors the willies. In other words, Southeastern sees an upside of about 160 per cent from today's prices.

GM shares have been selling for less than the $26.75 price they traded when I recommended them here in April 2005. (I had purchased them earlier for $37 before Controlled Greed was launched, so my personal cost is in the low $30s.)

I've held my position and will continue doing so. Would I buy GM here if I didn't already own it? Yep. But either way, with the economy looking weaker, GM shareholders must understand we'll endure some tougher times ahead.

Then again, you could say that for many, many stocks in this current environment. My take is any money you might use within five years shouldn't be in the stock market. Period.

Unlike much of the time since I started blogging in 2005, there are some good buys out there. If you agree -- buy 'em. Just understand they could go lower in the short-to-intermediate term before they go higher. And if they do? Well, you'll be in good company.