Viking Posted May 12, 2011 Share Posted May 12, 2011 Buffett in the past has said very nice things about GS. Is this company a world class franchise with a strong moat? Is the current negative press it is receiving transitory; simply driving down the share price and creating an opportunity to buy a great company at great price? In couple of years will we look back and see a missed opportunity? Price = $147 Link to comment Share on other sites More sharing options...
bathtime Posted May 12, 2011 Share Posted May 12, 2011 Michael Price talks about valuing GS in this video last week: http://www.bloomberg.com/news/2011-05-03/michael-price-says-goldman-sachs-is-great-value-stock-video.html Link to comment Share on other sites More sharing options...
biaggio Posted May 12, 2011 Share Posted May 12, 2011 good summary here: http://www.gurufocus.com/stock/GS Not within my small area of competence but: -am impressed by the quality of people that they attract,and that have worked there (this has to be an advantage that is not reflected in its balance sheet) -would BV be the proper metric for its operation (appears to have increased $84 to $151 over the last 4 years according to gurufocus---this should be verified) Concern-the huge financial bonuses paid out each year-this is probably what creates their culture/attracts high performers/aligns the workers performance with the financial performance of the company-the cost of doing their business + probably wise to overpay for highly qualified, hardworking, driven men and women. Trading at less than BV---I can foresee them getting(perhaps a lumpy) 15% per year return on BV---seems like a great deal to me. Any one here with an edge on GS? What is you opinion? Link to comment Share on other sites More sharing options...
Guest ValueCarl Posted May 12, 2011 Share Posted May 12, 2011 Buying Goldman Sachs? The best thing investors around the globe could do for America and themselves, would be to short this entity into its grave. It should be duly noted that the greatest respect Warren E. Buffett had for this investment bank's assets, excluding the $15.00 per tick interest he counted when he saved their bacon; left their firm to advise him as well as others personally. http://www.businessinsider.com/buffetts-personal-banker-leaves-goldman-sachs-2009-3 It can be said that Goldman's lost "reputation" since pulling a heist on the US Treasury will create a pungent smell for its advisors in the U.S. for some time to come! One can see them being avoided like the plague psychologically by US enterprises with or without global reach. As a matter of fact, maybe that's why we see them heading into new Chinese currency denominated funds aggressively this morning! Please go to China and don't come back, Goldman! http://www.ft.com/cms/s/0/919a5e4e-7c7d-11e0-b9e3-00144feabdc0.html#axzz1M9Yi9tlQ Don't buy Gold MEN, SHORT those SOB's!!!!!!!!! IMO Link to comment Share on other sites More sharing options...
Viking Posted May 12, 2011 Author Share Posted May 12, 2011 Here is the most recent Rolling Stone roast of Goldman. If trust/confidence/values is at the core of what a company does (particularly a finance company like GS) one has to wonder... www.rollingstone.com/politics/news/the-people-vs-goldman-sachs-20110511?page=1 Link to comment Share on other sites More sharing options...
Guest VAL9000 Posted May 12, 2011 Share Posted May 12, 2011 The system appears to be setup to reward cheating. Dirty operators (extreme example: Galleon) will more reliably make market-beating returns. Those who play by the rules are disadvantaged by cheaters - that is, it's harder for them to beat the market because cheaters beat them to the punch. So, investors are actually rewarded for seeking out dirty operators because there's no recourse to them. Even if The Raj goes to jail, I haven't seen any indication that Galleon will be punished, nor its investors. This reminds me of Munger's stance on accounting. Namely, that the incentives are perverse. Investors are rewarded for seeking out managers who are willing to use their insider status to gain an edge. GS is probably a good investment because they seem like the kinds of people who are willing to trade reputation for returns, even if I'm not. Link to comment Share on other sites More sharing options...
Liberty Posted May 12, 2011 Share Posted May 12, 2011 I wouldn't touch this culture. I don't believe in most conspiracy theories about GS, but the system seems to be set up to reward bankers, not shareholders, so it's not for me. Link to comment Share on other sites More sharing options...
Myth465 Posted May 12, 2011 Share Posted May 12, 2011 Seems like a big black box. I can understand Buffett he has a small field to choose from but I am not sure why a small guy would buy GS. Link to comment Share on other sites More sharing options...
mevsemt Posted May 12, 2011 Share Posted May 12, 2011 He also mentioned he like BofA in the video, which I found interesting b/c it's my most recent purchase: http://mevsemt.blogspot.com/2011/05/big-banks.html Link to comment Share on other sites More sharing options...
rranjan Posted May 12, 2011 Share Posted May 12, 2011 He also mentioned he like BofA in the video Can you point out the video? Link to comment Share on other sites More sharing options...
mevsemt Posted May 12, 2011 Share Posted May 12, 2011 It's a couple posts up, from "bathtime" Link to comment Share on other sites More sharing options...
rranjan Posted May 12, 2011 Share Posted May 12, 2011 Sorry, I misunderstood for Buffet making the statement. Link to comment Share on other sites More sharing options...
sswan11 Posted May 14, 2011 Share Posted May 14, 2011 I think that GS is "best of breed", but don't know how to handicap the criminal litigation threat. I sold some Jan13 120 puts today at $10.9, filled immediately which was a little scary. Link to comment Share on other sites More sharing options...
ubuy2wron Posted May 14, 2011 Share Posted May 14, 2011 I think that GS is "best of breed", but don't know how to handicap the criminal litigation threat. I sold some Jan13 120 puts today at $10.9, filled immediately which was a little scary. Was probably GOLDMAN BUYING, those guys would find a way to profit from their own demise it is the worlds biggest hedge fund but the vig is a heck of a lot more than 2 and 20. Link to comment Share on other sites More sharing options...
Guest hellsten Posted June 24, 2012 Share Posted June 24, 2012 Alex Bossert who I believe frequents this forum published a nice write-up on Goldman Sachs: http://www.scribd.com/doc/97716425/Goldman-Sachs-Investment-Report: If book value grows 12% going forward (even at a 12% ROE book value will grow faster because of accretive buybacks), tangible book value will grow to $174 by the end of 2014. At a multiple of 1.2-1.4x book value the company is worth $208-$243 when very depressed growth levels are assumed. If Goldman is able to generate ROE’s of 14 -16%, it’s worth up to $270 per share. Link to comment Share on other sites More sharing options...
AJB96 Posted June 24, 2012 Share Posted June 24, 2012 Thanks for posting hellsten! Link to comment Share on other sites More sharing options...
muscleman Posted August 19, 2012 Share Posted August 19, 2012 Any thoughts on whether GS is a good investment at current price? It is trading at just 68% of BV. I am new to this forum. I found GS in the general discussions, and people mostly talk about political aspect of it. I am wondering if it is ok to bring to Investment Ideas board, and let's talk about whether GS is a good investment at $103. Buffet's warrants are at $115, so I think we can assume that he would expect the value to be at least $150. Otherwise he won't make any money from it. Pros: 1. I am attracted to GS by the recent Knight Capital news. I am impressed with how GS ripped off KCG with the purchase of KCG's 150 stock holdings. GS is clearly the most clever firm in this industry. 2. They issued a lot of shares at 2007 market height, and now repurchased over 80% of those shares. This is a very clever manuvour. This is also an indication that GS themselves think the current price is low. Cons: What are the risks of investing in GS? Does it have any Europe exposure? I am not familiar with this investment banking industry. Link to comment Share on other sites More sharing options...
meiroy Posted September 6, 2012 Share Posted September 6, 2012 What was that mini rise yesterday? As a long GS I'm not complaining, just curious. Link to comment Share on other sites More sharing options...
berkshiremystery Posted January 22, 2013 Share Posted January 22, 2013 Even if this thread about GS seems almost dead, I might post here also some recent article by Alex Cho, a contributor of SeekingAlpha.com. Pabrai recently sold part of his position in GS while the margin of safety has become smaller. Goldman Sachs Is A Phenomenal Investment Opportunity 2013-01-17 SeekingAlpha.com http://seekingalpha.com/article/1116771-goldman-sachs-is-a-phenomenal-investment-opportunity ----- http://static.cdn-seekingalpha.com/uploads/2013/1/1062195_13584093839405_2.png Link to comment Share on other sites More sharing options...
ASTA Posted January 23, 2013 Share Posted January 23, 2013 Well I have been doing so well lately that I decided to sell my stake in gs which was 10%. makes me sleep better at night with 20% cash. Reasoning way is Pabrai sold before and 60% return is not to bad for 1.2 years and other gurus have not been buying much of this lately. And after this I have still 55% in financials including brk and ffh. Link to comment Share on other sites More sharing options...
Guest hellsten Posted April 3, 2013 Share Posted April 3, 2013 A former Goldman Sachs Group Inc. GS -2.72% trader admitted Wednesday to concealing a massive, $8.3 billion futures position more than five years ago—one that was 10 times as large as the trading limit for his business unit. … On Wednesday, Mr. Taylor said he lied in an email to Goldman personnel investigating the trading on Dec. 14, 2007, the day after the alleged trade. He said he made the trade in hopes of enhancing his position at Goldman and improving his potential year-end compensation. http://online.wsj.com/article/SB10001424127887324600704578400332210938670.html Link to comment Share on other sites More sharing options...
Grenville Posted August 20, 2013 Share Posted August 20, 2013 "Goldman faces losses on erroneous trades" http://www.cnbc.com/id/100975982 Goldman Sachs could lose as much as $100 million after making erroneous trades that disrupted trading activity across multiple options exchanges on Tuesday, market participants have told the Financial Times. Link to comment Share on other sites More sharing options...
constructive Posted August 21, 2013 Share Posted August 21, 2013 With BAC advancing 170% in less than 2 years and eliminating most of the "BAC discount", I think it makes sense to look at higher quality banks. In particular GS trades at a lower price to tangible book compared to BAC. See attached. Note, this chart shows simple trailing ROE. BAC and C normalized ROEs will be higher, but still less than GS, PNC and JPM.Bank_Value_Chart.pdf Link to comment Share on other sites More sharing options...
alertmeipp Posted August 21, 2013 Share Posted August 21, 2013 what would MS be at? Link to comment Share on other sites More sharing options...
constructive Posted August 21, 2013 Share Posted August 21, 2013 what would MS be at? Near C on the chart, they're cheap but they've been struggling ROE wise. Link to comment Share on other sites More sharing options...
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