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Mary Barra's ongoing tenure as GM Chair & CEO perplexes me. Certainly the stock performance (-3.87% over 5Y vs -2.12% for Ford, wouldn't be fair to bring Tesla

Mary Barra's ongoing tenure as GM Chair & CEO perplexes me. Certainly the stock performance (-3.87% over 5Y vs -2.12% for Ford, wouldn't be fair to bring Tesla into the conversation) doesn't help to justify her position.

JumpCrisscross 3y ago
To wit: from January 2014, when Barra "took over as chief executive of General Motors" [1], to today, $10,000 invested in GM stock would have generated a total return (i.e. including dividends) of 26% (2.5% annualised) [2]. In the same time, the S&P 500 returned almost 150% [3]. In fact, an investor in January 2014 would only have to lock up their money for 5 months in Treasuries to generate the return Barra has delivered to her investors in ten years [4]. [1] https://en.wikipedia.org/wiki/Mary_Barra https://en.wikipedia.org/wiki/Mary_Barra [2] https://dqydj.com/stock-return-calculator/ https://dqydj.com/stock-return-calculator/ [3] https://finance.yahoo.com/quote/SPY/chart?p=SPY#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- https://finance.yahoo.com/quote/SPY/chart?p=SPY#eyJpbnRlcnZh... [4] https://www.irs.gov/retirement-plans/monthly-yield-curve-tables https://www.irs.gov/retirement-plans/monthly-yield-curve-tab...
- KRAKRISMOTT 3y ago
  Not a fair take, you should only be comparing with the rest of the industry. Different industries have to price in different markets and risks.
  - JumpCrisscross 3y ago
    > Not a fair take, you should only be comparing with the rest of the industry The S&P 500 isn't a fair comparison, but the Treasury one is. That's the risk-free rate.
    - KRAKRISMOTT 3y ago
      Then take the ten year yield, not the short term 5 months yield, you are comparing with the benefit of hindsight which is not viable for any financial analysis.
      - JumpCrisscross 3y ago
        > take the ten year yield, not the short term 5 months yield The ten-year yield was closer to 6% when Barra took the helm. That's much worse! The point of the comparison is that the return she delivered over her ten-year term was analogous to that which an investor demanded to lend to the U.S. government for a grand total of five months. It's driving home the terribleness of the return within the context of her hiring: she has failed to return anything close to GM's cost of capital. > you are comparing with the benefit of hindsight which is not viable for any financial analysis It's totally valid for evaluating a manager!
edwrenbeck 3y ago
Her entire statement doesn't make any sense. GM spends four years developing a vehicle iteration. Is she saying they are going to sell the old Bolt iteration, which was already old when canceled? I'm guessing they are just re-badging something else already in development.
- AntonyGarand 3y ago
  They're bringing the bolt format to their new ultium platform, meaning it'll reduce the cost and complexity of building this vehicle. It'll be like alongside the equinox and blazer, same platform for a smaller shell.

JumpCrisscross 3y ago

To wit: from January 2014, when Barra "took over as chief executive of General Motors" [1], to today, $10,000 invested in GM stock would have generated a total return (i.e. including dividends) of 26% (2.5% annualised) [2]. In the same time, the S&P 500 returned almost 150% [3]. In fact, an investor in January 2014 would only have to lock up their money for 5 months in Treasuries to generate the return Barra has delivered to her investors in ten years [4]. [1] https://en.wikipedia.org/wiki/Mary_Barra https://en.wikipedia.org/wiki/Mary_Barra [2] https://dqydj.com/stock-return-calculator/ https://dqydj.com/stock-return-calculator/ [3] https://finance.yahoo.com/quote/SPY/chart?p=SPY#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- https://finance.yahoo.com/quote/SPY/chart?p=SPY#eyJpbnRlcnZh... [4] https://www.irs.gov/retirement-plans/monthly-yield-curve-tables https://www.irs.gov/retirement-plans/monthly-yield-curve-tab...

KRAKRISMOTT 3y ago
Not a fair take, you should only be comparing with the rest of the industry. Different industries have to price in different markets and risks.
- JumpCrisscross 3y ago
  > Not a fair take, you should only be comparing with the rest of the industry The S&P 500 isn't a fair comparison, but the Treasury one is. That's the risk-free rate.
  - KRAKRISMOTT 3y ago
    Then take the ten year yield, not the short term 5 months yield, you are comparing with the benefit of hindsight which is not viable for any financial analysis.
    - JumpCrisscross 3y ago
      > take the ten year yield, not the short term 5 months yield The ten-year yield was closer to 6% when Barra took the helm. That's much worse! The point of the comparison is that the return she delivered over her ten-year term was analogous to that which an investor demanded to lend to the U.S. government for a grand total of five months. It's driving home the terribleness of the return within the context of her hiring: she has failed to return anything close to GM's cost of capital. > you are comparing with the benefit of hindsight which is not viable for any financial analysis It's totally valid for evaluating a manager!

edwrenbeck 3y ago

Her entire statement doesn't make any sense. GM spends four years developing a vehicle iteration. Is she saying they are going to sell the old Bolt iteration, which was already old when canceled? I'm guessing they are just re-badging something else already in development.

AntonyGarand 3y ago
They're bringing the bolt format to their new ultium platform, meaning it'll reduce the cost and complexity of building this vehicle. It'll be like alongside the equinox and blazer, same platform for a smaller shell.