Wednesday, December 15, 2010

Buy Goldman Sachs (GS)

Plain and simple, there is no way that Goldman Sachs should only be trading at 1.25 times its book value.

Goldman's share price has been suppressed ever since it got in trouble all the shady investment vehicles it was selling, but I believe that none of that will effect Goldman's future business operations.

Some positives about GS:

  • 800 billion dollars in cash vs. only 400 billion in debt.  (Google only has 30 billion dollars in cash just to give you a perspective).
  • Profit margin of over 25%
  • Name Brand
  • The most talented financial minds in the world want to work for Goldman Sachs (especially from my generation)
If you think Goldman's reputation is still shaky, consider that just today Goldman was rated the #1 place to work on Wall Street.

Michael R Caligiuri owns shares of Goldman Sachs stock

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