NYSE:GS

Goldman Sachs (GS)

942.00
-9.47 (1.00%)
as of Sep 18, 2026, 8:00:00 pm Market Open.
229 watching
0
PAST TOP PICK
(A Top Pick Apr 09/18, Down 23%) Yield curve inversion has put banks out of favour. Malaysia scandal is weighing on the stock. World's best investment bank, at a single digit multiple, looks compelling.
BUY
It has had trouble getting out of its own way in terms of where it has come from. The brand has been tarnished since 2008. It trades at about 90% of book value. It still represents a premier house in which to do M&A and he thinks 2019 will be a strong M&A environment. They have strengthened their abilities in the wealth management area.
DON'T BUY
Their is some concern that interest rates may rise, which could slow them down. They have a bit of a tainted image -- making money on the backs of their clients. A profitable company, but not one they have wanted to own.
TOP PICK
Good growth. Loan losses are very conservative. GS will probably do M&A in this late cycle. Expects good performance here. (Analysts’ price target is $230.46)
BUY
Well-run with earnings in the last report very good. Fine revenue growth as was investment banking. Fixed income fine. The Indonesian lawsuit is a concern, though. Trades at 10x earnings and slightly above book value. He loves it.
PAST TOP PICK
(A Top Pick Feb 06/18, Down 21%) They had stellar numbers in 2018 like 11% revenue growth and bought back 2% of its stock.. But they're by this Malaysian scandal, sued by their government by a huge amount and create a crisis of confidence--buy this will pass. GS recovered a bit in Q4. But he doesn't understand why this is trading at tangible book value. A wonderful franchise.
COMMENT
US banks didn't do well last year. First 3 quarters showed strength in global markets. Negative performance in client engagement. Corporate business OK. If you own 3 banks, sell 1 and diversify.
WAIT
Price to book ratio play. Classically you buy it below book and sell it at 1.5-1.8X. Currently 0.86X price to book looks really tempting. They are not as susceptible to net interest margin, to the credit, to a number of factors that are going to hit banks. Much more focused business line, great wealth management, great asset management, great trading capital market and investment banking. But at the end of the day we are at the end of the cycle and now may not be the time to buy this.
DON'T BUY
He is not there for the financials and not warming up on them. He does not think rates are going much higher. He was short and covered.
WAIT
Loves range-bound stocks, because they're so easy to trade. He was going to buy this, but didn't because it broke down early. Fundamentally, he likes it. $160-130 would be a target for the downside, and could bounce off that. If you already own, you're already 3/4 of the way through the damage.
DON'T BUY
They are trading at 67% of book value, but are also impacted by a fraud issue in Malaysia. There is fear that there may be more issues to company. An inexpensive stock now, but there may be better opportunities out there.
PAST TOP PICK
(A Top Pick Jul 24/18, Down 19%) Great company. Exceptionally profitable. Trading at 7 and 1/2 normalized earnings. Once they get over the big scandal. That will cost them $2 billion and they made $13 billion last year in profits. The best company in taking advantage of dysfunctional markets in the world. Global leader in investment banking. Pristine balance sheet. Good value. Just added to his position.
TOP PICK

If you avoid the noise, it is trading at 8 times earnings. Easily a $250 stock that generates very attractive returns in two years. Yield is 1.8% (Analysts’ price target is $260.00)

DON'T BUY
Brokerages are more volatile than banks or insurance companies, because they rely so much on capital markets. In the late-cycle, there's a lot of general uncertainty. If you want exposure to the U.S. financial sector, buy a bank of lifeco which are more stable.
DON'T BUY
Corruption in Asia has triggered a sell-off. He prefers TD, and owns no US banks. (TD operates in the US.) If they can't shake off these corruption charges, then GS will be in the penalty box for a while
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