GM did collapse and if you owned stock in it, your stock was cancelled and became worth 0.
"Would any investor at that time be scared of ford and GM?"
Ford was in a much better spot than GM but an investor could have appropriately been scared of both.
" I've always learnt that when a market crashes you buy companies with strong balance sheets. Before the crisis hit the GM and Ford hardest, did they possess strong balance sheets?'
Are you at all aware of what bankruptcy means? It is something like the opposite of "strong balance sheet".
"Another Q is say i buy a company during dark days of a stock market, if it has a very strong balance sheet with double amouint of assets over liabilitles is it most likely to survive the crash?"
The ratio of assets to liabilities is a pretty second tier predictor of anything. In general a company's stock price movement in a stock market crash has not much to do with the survival of the company as going concern.
Ok im relatively new to invseting and during the crisis of 2007 which shattered the markets im wondering what happened precisely and did anyone think of buying the two car giants, general motors and ford.
In my opinion presently ford make brilliant cars i will happily buy it today at a good price. i dont think GM is doing so well but during the dark days was it actually that close to collapsing? Would any investor at that time be scared of ford and GM? I've always learnt that when a market crashes you buy companies with strong balance sheets. Before the crisis hit the GM and Ford hardest, did they possess strong balance sheets?
Another Q is say i buy a company during dark days of a stock market, if it has a very strong balance sheet with double amouint of assets over liabilitles is it most likely to survive the crash? say for example companies like GE or john deere?
Thank you!!!
