General Motors' Cruise Stake Could Be Worth More Than The Entire Company

General Motors and Cruise - General Motors owns an ~80% stake in Cruise, positioning it to potentially capitalize on the growth of self-driving vehicles [1] - Despite recent challenges, a successful self-driving company like Cruise could be valued at around $100 billion [1] Narweena's Investment Philosophy - Narweena focuses on identifying market dislocations caused by a poor understanding of long-term business prospects [1] - The firm seeks excess risk-adjusted returns by targeting businesses with secular growth opportunities in markets with high barriers to entry [1] - Narweena's research emphasizes company and industry fundamentals to uncover unique insights [1] - The firm has a high risk appetite and a long-term investment horizon, targeting deeply undervalued stocks [1] - Narweena's coverage leans towards smaller-cap stocks and markets where competitive advantages are not immediately obvious [1] Macroeconomic Trends and Investment Implications - An aging population, low population growth, and stagnating productivity growth are expected to create a different set of investment opportunities compared to the past [1] - Many industries may face stagnation or secular decline, which could paradoxically improve business performance if competition decreases [1] - Conversely, some businesses are likely to experience rising costs and diseconomies of scale [1] - Economies are increasingly dominated by asset-light businesses, reducing the need for infrastructure investments over time [1] - A large pool of capital is chasing a limited set of investment opportunities, driving up asset prices and compressing risk premia [1] Richard Durant's Background - Richard Durant holds undergraduate degrees in engineering and finance from the University of Adelaide (Honors) and an MBA from Nanyang Technological University (Dean's Honors List) [1] - He has passed the CFA exams [1]