This time will be different, Hayman Capital's Kyle Bass told CNBC on Thursday.
In an interview on CNBC a day after Bass, known as an outspoken hedge fund manager, made headlines for taking a stake in General Motors, he said he erred in his last big bet—J.C. Penney—because he wasn't able to predict that vendors would change terms with the retailer so quickly. He said when that happened, it was like "depositors running from a bank."
Instead, GM is poised to better compete in North America as it emerges from bankruptcy and government control, Bass said.
"What we got wrong there was the fact that the vendors could change their terms really quickly," Bass said on "Squawk on the Street." "But in this case, you have GM really—pardon the pun—hitting on all cylinders and really taking market share back in North America, one of the most profitable segments."
(Read more: Kyle Bass takes stake in 'undervalued' GM)
Bass said because J.C. Penney lacked the cash supply to deal with the vendor changes, it hurt shareholders. He said J.C. Penney CEO Mike Ullman has been able to stabilize the issues since then.
"It forced J.C. Penney to raise new money and dilute the shareholder base by almost 40 percent," Bass said of the vendor changes. "It was something we thought was not likely to happen. We thought the new CEO would be able to stabilize things, which as you've seen in the past couple of days, they've been able to do."
(Read more: Cramer: Sector becoming impossible investment)
Restating his motives for betting on GM, Bass said the declining role of the U.S. government in the once-bankrupt car manufacturer should produce shareholder-friendly dividends. A well-reviewed product line could also help the company gain market share back from competitors like Ford, Bass said.
"It's no longer going to be government motors," Bass said. "It's going to be General Motors."
—By CNBC's Jeff Morganteen. Follow him on Twitter at @jmorganteen and get the latest stories from "Squawk on the Street"