The basic tenets to value investing and margin of safety are the following: Every stock is a fractional share of an actual business. Every business or stock has an “intrinsic value.” The “intrinsic value” of a business generally changes at a much slower rate than the price of a publicly traded stock can change. Over...Read More

Here is Tim Travis’ research report on Goldman Sachs Group Inc. (GS) on Apr 16th 2013.   http://seekingalpha.com/article/1345961-goldman-sachs-roe-in-weak-economy-bodes-well-for-future-profitabilityRead More

Dramatic regulatory changes and capital requirements have undeniably changed the landscape for banks.  The short-term impact has been lower profits and revamped business models.  While most market participants are shorter-term thinkers and might come to the conclusion that things have changed for the worse forever, I’d argue against that.  While certain businesses such as proprietary...Read More

This is a very interesting article on Goldman Sachs (GS) development of a private bank to service wealthy clients with loans.  Due to its status as a bank holding company Goldman Sachs has additional costs and regulations that it didn’t have before the financial crisis.  It also provides new business opportunities and I believe this...Read More

This article wrongfully states that investors are buying credit default swaps on Wall Street Banks to protect themselves.  Realistically most credit default swaps are used as a speculation tool similar to shorting.  The difference is that CDS markets have a lot less reliable liquidity and can easily be distorted by larger traders such as JP...Read More

This is an interesting little article detailing how Byron Trott formerly of Goldman Sachs (GS), brokered the deal with Warren Buffett in 2008 for a $5 billion investment.  It’s nice hearing somebody under oath detailing how Warren Buffet’s decision making process works. http://www.bloomberg.com/news/2012-05-23/goldman-sachs-s-trott-tells-jury-of-secrecy-around-buffett-deal.html INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR...Read More

Goldmans Sachs (GS) is staying aggressive by taking principal investments in the tech sector similar to a venture capital firm.  While the strategy has worked out quite nicely for Goldman lately I’m somewhat surprised to hear this due to the Basel III guidelines which reduce the attractiveness of principal investments for banks.  I would expect...Read More

Lloyd Blankfein was interviewed on Bloomberg today and I though he made some salient points.  One thing that I thought he was right on about was the fact that while everybody is predicting dire returns on equity for financials including the investment banks, Goldman Sachs (GS) had a 12.2% ROE in the first quarter despite...Read More

Say what you what about Goldman Sachs but they are not stupid people and they understand the housing and mortgage markets.  Inventories are down and when demand picks up watch out. http://www.bloomberg.com/news/2012-03-29/goldman-bets-on-property-rebound-with-new-fund-mortgages.html INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.Read More

Today (JEF) Jefferies released their earnings which drastically beat low expectations, and as a result the stock is up about 20%.  This is an extremely well run investment bank, and the largest shareholder’s are Leucadia, and the CEO Richard Handler.  Both Handler and Leucadia have proven to be extremely astute managers and investors in the...Read More