Author Topic: GS - Goldman Sachs  (Read 24049 times)

Spekulatius

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Re: GS - Goldman Sachse
« Reply #70 on: December 29, 2018, 01:02:51 PM »
Book  value hasn’t grown much over the years, but post the financial crisis, GS has become a cannibal. Their share count maxed out in 2010 at 526M shares and now sits at 371M shares. Their ROE has been a bit over 10% over the years, but net earnings yields  were lower due to fines, similar to what other banks experienced. one can argue, if these fines are a cost of doing business or not.

The tax reduction alone should improve the ROE by 10-15%, I think, again similar to other banks. If you by a company with a ROE of 11-12% at <0.9x tangible book and this company is a rational capital allocator (which I think GS is) then one should do OK over time. If they can do even better than that in terms of ROE, this could become quite a home run.

(Edited for typos)
« Last Edit: December 30, 2018, 10:48:43 AM by Spekulatius »
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Shane

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Re: GS - Goldman Sachs
« Reply #71 on: December 30, 2018, 09:24:57 AM »
Thanks Spekulatius!  This was very helpful to me.

Jurgis

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gfp

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Re: GS - Goldman Sachs
« Reply #74 on: January 16, 2019, 05:21:37 AM »
Good results out of Goldman this morning -
https://www.goldmansachs.com/media-relations/press-releases/current/pdfs/2018-q4-results.pdf

(just your standard #1 in its industry $70 Billion market cap company that makes over $10 Billion in net income per year..  )
« Last Edit: January 16, 2019, 06:00:44 AM by gfp »

valuedontlie

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Re: GS - Goldman Sachs
« Reply #75 on: January 16, 2019, 06:04:52 AM »
Full year results obviously look great with revenue up big and per share earnings up ~20%... Q4 maybe not as much... strip out the tax legislation impact and per share earnings were down 15% even with a 3% reduction in average shares out...

Check out page 16 of the earnings release: https://www.goldmansachs.com/media-relations/press-releases/current/pdfs/2018-q4-results.pdf

Cardboard

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Re: GS - Goldman Sachs
« Reply #76 on: January 16, 2019, 06:39:03 AM »
Still a really good buy at this level IMO.

Congratulations to those who bought at peak fear!

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Libs

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Re: GS - Goldman Sachse
« Reply #78 on: May 31, 2019, 02:47:54 PM »
Book  value hasnít grown much over the years, but post the financial crisis, GS has become a cannibal. Their share count maxed out in 2010 at 526M shares and now sits at 371M shares. Their ROE has been a bit over 10% over the years, but net earnings yields  were lower due to fines, similar to what other banks experienced. one can argue, if these fines are a cost of doing business or not.

The tax reduction alone should improve the ROE by 10-15%, I think, again similar to other banks. If you by a company with a ROE of 11-12% at <0.9x tangible book and this company is a rational capital allocator (which I think GS is) then one should do OK over time. If they can do even better than that in terms of ROE, this could become quite a home run.

(Edited for typos)


This is a good summary, and at $182 GS looks good here. I added today.
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Spekulatius

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Re: GS - Goldman Sachse
« Reply #79 on: May 31, 2019, 03:32:38 PM »
Book  value hasnít grown much over the years, but post the financial crisis, GS has become a cannibal. Their share count maxed out in 2010 at 526M shares and now sits at 371M shares. Their ROE has been a bit over 10% over the years, but net earnings yields  were lower due to fines, similar to what other banks experienced. one can argue, if these fines are a cost of doing business or not.

The tax reduction alone should improve the ROE by 10-15%, I think, again similar to other banks. If you by a company with a ROE of 11-12% at <0.9x tangible book and this company is a rational capital allocator (which I think GS is) then one should do OK over time. If they can do even better than that in terms of ROE, this could become quite a home run.

(Edited for typos)


This is a good summary, and at $182 GS looks good here. I added today.

I sold my position build last year, but I agree, at these levels, it starts to become interesting again. I do think it is quite interesting  in terms of watching how they go from Wall Street to Main Street and consumers (Marcus etc) in their business model, to make their earnings more predictable. They are still early in this transformation, but if this gains traction, then the GS in 10 years will look liquide a bit differently than it does look today.
To be a realist, one has to believe in miracles.