The billionaire investor who said he bought Ford stock as a long term investment is pulling out of the automaker after a short, money losing ride. Kirk Kerkorian still owns more than 6% of Ford's outstanding common shares.
But in selling 7 million shares, the legendary investor says he may further liquidate his Ford stake.
Back of the envelope math: Kerkorian bought the stock for roughly $6.91 a share and sold at $2.43 a share meaning he lost $32.7 million. So what does all this mean?
For the average investor you can take this as a sign that Kerkorian and Jerry York, his chief lieutenant on auto investments, do not see Ford rebounding anytime soon. In fact, Kerkorian's firm Tracinda Corp believes its money is now better allocated in gaming and hospitality investments. In other words: Ford shares are dead money for the foreseeable future.