THE BONDHOLDERS: David Talbot

Question of the Day

Is it still considered bad form to talk politics during a social gathering?

View results

David Talbot
Age: 24
Residence: Bellingham, Wash.
Occupation: Student
Household income: $25,000
Family: Single
Amount invested in GM bonds: $5,000
Date of purchase: 1988
Percent of portfolio that were GM bonds at purchase: 100 percent
Percent of portfolio now: 100 percent
Reason for purchase: A gift from his grandfather
Reason for holding after downgraded to junk status in 2005: Wasn’t sure exactly how they worked
Original investment goal: College education

David Talbot’s grandfather bought GM bonds for him when he was 4 years old. The bonds were supposed to mature at $20,000 in 2012, and Mr. Talbot hoped to pay off his college loans with the proceeds.

But Mr. Talbot said he’s “pretty grumpy” about the prospects of making any profit. He said he would be lucky to get back the principal investment of $5,000.

Mr. Talbot blames the government and union involvement for weakening GM’s ability to compete. But in the end, it doesn’t matter who was to blame, he said. His nest egg has all but disappeared.

He would prefer that GM did not have to go into bankruptcy. His real worry is that the government is so deeply involved as a large owner of the firm. “I like the idea of GM sorting its own stuff out,” he said. “The more [the government] gets its hand mixed up in the pot, the more I expect to lose that investment.”

Click here to view vignettes of seven other GM bondholders.

Comments
blog comments powered by Disqus
TWT Video Picks