Goldman Sachs Group, Inc. (NYSE:GS)

CAPS Rating: 4 out of 5

Global investment bank, securities and investment management firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.

Recs

37
Player Avatar alberta911 (74.66) Submitted: 4/4/2009 11:32:41 PM : Outperform Start Price: $79.63 GS Score: +30.00

Stolen from Goldman Sachs game book:
1. Remove troublesome government regulation
2. Create a bubble
3. Short the bubble

And that's why this POS is up 100% in my real portfolio.

The only difference between this and Enron is Goldman Sachs has a lot friends.

Report this Post 19 Replies
Member Avatar blake303 (29.25) Submitted: 4/15/2009 2:48:31 PM
Recs: 4

Enron had just as many friends. Remember Ken "Kenny Boy" Lay?

Member Avatar alberta911 (74.66) Submitted: 4/16/2009 10:43:43 PM
Recs: 3

100% correct Blake. I should have wrote The only difference between this and Enron is Goldman Sachs has a lot of former employees working in the Security Exchange Department.Remember Andy Fastow?Looks like Goldman Sachs and the SEC borrowed Andy Fastow counter party game book.The only difference?He is in jail and they are in power.In the meantime while we wait for indictments........Leverage TARP and double down baby.This is free money and take what you can as fast as you can before someone figures this out!

Member Avatar ChrisGraley (29.75) Submitted: 5/5/2009 10:15:55 AM
Recs: 2

I wrote about this very thing in my blog.http://caps.fool.com/Blogs/ViewPost.aspx?bpid=189816&t=01001715702649948160

Member Avatar TMFAleph1 (95.13) Submitted: 5/14/2009 2:52:39 PM
Recs: 3

That's nonsense: there is no comparison between Goldman Sachs and Enron. Goldman is the preeminent firm in an industry that is experiencing change and turmoil; the industry will survive and Goldman will thrive. Warren Buffett would not invest $5 billion in a firm that was another Enron, no matter who, how many and how powerful its "friends" are.

By the way, what is the 'Security Exchange Department'? Do you mean the U.S. Securities and Exchange Commission (SEC)?

Member Avatar alberta911 (74.66) Submitted: 5/14/2009 6:59:13 PM
Recs: 2

No comparison?
Wow Enron was a preeminent firm in an industry that was experiencing change and turmoil.

Try Goldman Sachs and Enron deals were hatched in the back alleys of Wall Street and escaped the scrutiny of anyone making an independent assessment of their risk.

Do you mean the U.S. Securities and Exchange Commission (SEC)?
No I mean The United States Security Exchange Non Accountability Commission.

Warren Buffett would not invest $5 billion in a firm that was another Enron, no matter who, how many and how powerful its "friends" are.
You must be too young to remember one of the most important day in Warren Buffett's life
http://chinese-school.netfirms.com/Warren-Buffett-Salomon.html

Interesting while you praise Goldman Sachs your $5billion dollar investor Charlie Munger just stated
"The culture of Goldman Sachs as a partnership was morally superior and better for the surrounding
civilization than the culture that came after it went public.”
http://www.shadowtraders.com/futuresblog/?p=663

When you know better you will do better...

Member Avatar foolsMeThrice (99.63) Submitted: 6/4/2009 11:36:19 PM
Recs: 2

We are all talking nonsense unless you know what GS's books look like. It would take 1000 of our best scientists and mathematicians 10 years to figure it out. This is just another negative equity situation. My guess is at some point JPM might take them over just as they've done with Bear. Citibank and BoA are safer bets than GS. They actually have a deposit base.

Member Avatar andywd82 (36.33) Submitted: 6/11/2009 6:23:40 PM
Recs: 3

The fact that it would take 1000 PHD's to disipher the GS balance sheet is exactly what they have in common with Enron.

Member Avatar brocksamson (28.31) Submitted: 6/23/2009 6:59:09 AM
Recs: 1

Warren Buffet would invest $5 billion in GS precisely because of "who, how many and how powerful its 'friends' are." His entire investment strategy involves purchasing low-risk undervalued plays. Seeing as practically half the regulators and advisors in Washington are GS, risk is minimized and reward is enhanced. He is no saint.
Unlike his father, Warren Buffett has quite the authoritarian streak. He talks up a free market while purchasing equity in the most highly-political large businesses. He does this no doubt because of the preferred credit and purchasing power they receive from their proximity to the Fed in the lending cycle.
How else could he talk up GE? Were it not for the government bailout, that company would be undoubtedly bankrupt because of its over-leverage in GE Financial. Once upon a time Mr. Buffett had an investment strategy, now he is such a large market player that he can just ride his reputation.

Member Avatar alberta911 (74.66) Submitted: 6/23/2009 8:46:15 PM
Recs: 2

Love to hear opinions about the following:

Berkshire Hathaway investment strategy vs. The Taxpayer's/government's investment strategy

Taxpayer's GS return vs. Mr. Buffett's GS return on the date of the transaction

Berkshire Hathaway
Buffett's investment in Goldman was $5 billion worth of perpetual preferred stock @ a 10% dividend
He has 5 years to exercise his warrants on $5 billion of common stock @ a strike price of 115 a share.
43.5 million warrants valued by Black-Scholes @ $3.6 billion or $82.18 each

Taxpayers investment in Goldman was $10 billion TARP and $12.9 billion from AIG
12.2 million warrants worth $882 million or $72.33 each.

This my friends is why he has one of the best investment records and reputations in the investment industry.

Bottomline
Warren Buffett's investment in Goldman will net Berkshire Hathaway billions
The taxpayer's investment in Goldman which IS FOUR TIMES as much will not even break even.
Warren Buffett was Goldman's Saint while the Taxpayer bailout was Goldman Sach's Messiah

Member Avatar alberta911 (74.66) Submitted: 6/23/2009 8:55:10 PM
Recs: 1

Andywd82 this should be a top pitch!

Member Avatar alberta911 (74.66) Submitted: 6/23/2009 8:55:11 PM
Recs: 1

Andywd82 this should be a top pitch!

Member Avatar alberta911 (74.66) Submitted: 6/30/2009 6:11:35 PM
Recs: 1

The New York Stock Exchange Decommissioning of the Daily Program Trading Report.....this is one more reason to refer to the U.S. Securities and Exchange Commission (SEC) as the United States Security Exchange Non Accountability Commission.

Member Avatar ipfmanager (95.59) Submitted: 7/14/2009 7:47:32 AM
Recs: 1

GS does not cook the books like Enron (hopefully). But this is one of the funniest and accurate pitches I've seen on this site.

Member Avatar alberta911 (74.66) Submitted: 7/15/2009 3:21:49 PM
Recs: 1

Look...It's a bird...It's a plane...no it is just Cap and Trade!

Alex...for $5 in earnings....who coined Cap and Trade?

Ipfmanager...the sickest joke of them all is...this is a true core holding of mine...the only changes I will make to take of margin...as the risk outweighs the reward .

foolsMeThrice hit the short button @ $113 but was long when it was $200...odd considering the only thing that changed was accounting, rules, front and back door bailout, and competition.
Thanks for the tip on JPM buyout here is a C tip for you from our perspective back in the day...
It's an elegant stock manipulation engine!
First my hedge fund buys ten million shares of Citigroup at $2.50.
Then I go in with the government on a hundred million in toxic assets, risking 3 million of my own money and paying whatever I have to pay.
I assume other hedge funds are thinking along the lines I am and so are also buying this stuff.
As the toxic assets are removed from Citi's balance sheet, the stock price inevitably goes up.
I sell my ten million shares at $3, covering 100% of my potential loss on the toxic assets and pocketing 2 million in additional profit.
If the toxic assets appreciate, I split the profit with the government.
If they don't, it's not my problem.
Geithner is happy, because he and I have started to re-inflate the bubble.
Through market manipulation, we've once again created value where there isn't any.
The Monday Geithner announced this plan, Citi gained 41%, so it's already working.
Of course, it won't be long before your bailing out the FDIC.

brocksamson Presently short in CAPS

andywd82...you are still my favourite poster here ....but they whistle blew on Enron when they were left out of the CAP and TAX this time they are a full fledged owner of that exchange.

TMFMarathonMan ALEX...WTF!! What did they teach you at Princeton? You have a CFA yet you never heard of SP or Andy? MBA or no MBA you should demand a refund!

WTF? While you guys defend and short..... I will continue to joke and hold for my early retirement...in US dollars which is not my favourite long term currency...while I wait for an indictment....as populous rage and spite does not pay my bills... GS does.

Member Avatar PSU69 (90.74) Submitted: 8/12/2009 3:28:57 PM
Recs: 1

GS has a new global power and connectedness that exceeds any other player in their game. We can snipe about the past. I like to look out to see where GS will be in the future and I believe they will go over $300 before Santa does his duty this December. GS has fewer enemies and they have friends well placed globally, not just in the Beltway.

Good luck to all as the second half of 2009 unfolds. I remain long on GS.

Member Avatar rwebankrupt (78.43) Submitted: 8/30/2009 6:56:37 PM
Recs: 0

ROFL Andrew Lahde's goodbye letter is looking mild Alta911. Nice to read your humor is still as large as your clients portfolio!

Member Avatar alberta911 (74.66) Submitted: 9/16/2009 1:12:27 PM
Recs: 1

For those who respect "connectedness" but are looking for a cheaper way to play this sector than DD ENDEAVOUR FINANCIAL CORP (EDV.TO) about $1.60 canadian
Endeavour has Frank Giustra who happens to be BFF with Bill Clinton
Endeavour has the Agapov family who happens to have a Russian history and BFF is Hugo Chavez
Their collective relationships do not end there but somewhere between Silver Wheaton and PACIFIC RUBIALES ENERGY CORP (Toronto: PRE.TO) you will not be surprised to see Goldman is buying in Canadian dollars.

Member Avatar Matt8265 (26.11) Submitted: 12/2/2009 10:57:44 AM
Recs: 1

GS will die by the same sword they lived by.
I'll help plunge it deep.

Member Avatar freestockangel (< 20) Submitted: 1/3/2010 12:27:12 AM
Recs: 1

downward momentum !

for more information, refer to my blog

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