The title really looks silly? Does it make sense? Maybe not…..but read on and you will understand the title.. have some patience!

We all have heard about AIG, its stock, its bad management team, its unreal bonus. …the list goes on and on. AIG has been in the news a lot and always for the wrong reason.

In last one year, the stock price for AIG has dropped from approx $52 to as low as $0.49, which means that if you bought 1000 stocks last year for $52,000 then it is worth only $490 or a drop of over 99% in its value!! And you lost over $51,000!

Now let us talk about My AIG…which means My Automobile Is Great! Surprised by the revelation of the title… actually it makes sense… read on

How many time have you heard that buying a car is never a good investment.. you lose approx 5% of the paid price as soon as you drive your car out of the dealer’s lot. The price of the car depreciates by at least 10% in its first year and by 50% in next five to six years. This reduction in assets value was really bad until last year.. but now it does not look that bad. Even with the worst kind of car you are not going to lose 99% of its cost in 1 year (except when you total it).

Let us do the math: With 1000 stocks of AIG (bought at $52,000) you would lose $51,000 or 99%. Instead of AIG, if you would have bought a shiny BMW, or a Ford, GM or a Mercedes car for $52,000, that car may still be worth $49,000! A saving of more than $48,000. You may even get more for your car, if you had maintained it well with regular oil changes, tire rotation and other scheduled maintenance.

Now tell me my dear readers… which is a better investment….AIG stock or buying a car of course car!! Who can now say that investing in car is a bad idea?

Long live America and its auto industry!

I love my car…My AIG