Sell GS Thesis
Hello everyone,
I'm not sure if this has been done before, but I have a sell thesis on goldman that I made in my student investment fund. I'm a sophomore at a non target majoring in CS and Econ so don't rip this a part. The reason I'm doing this is because I recently had a superday and was grilled on my experience at this fund and I brought up the thesis and they weren't too convinced.
Sell thesis: The ABC currently holds 75 shares of the Goldman Sachs Group (GS) which equates to $15,264 or 3% of the portfolio. Although the bank started 2018 well with impressive numbers on their legacy desks (M&A, equities trading), Q3 and Q4’s results were extremely mitigated. Later in the year, the bank got into some legal troubles with the 1MBD scandal. It is unclear whether Goldman Sachs participated in any inappropriate activities, but it seems likely that Goldman’s due diligence efforts will be criticized which could lead to meaningful disruptions in personnel and operations. Although the Financials Sector underperformed significantly in Q4, bank stocks were able to rebound in the start of the new year, as we recouped some of our losses. Our shares in Goldman Sachs have been significantly underperforming relative to our other bank stocks in our portfolio. The cost basis for our position is $18,246 and our current value is $15,264. Goldman’s very high exposure in emerging markets and volatility that moves with global politics makes us fearful for the future. With signs of US growth slowing down, trade tensions with China, and Goldman’s new issues in Asia, we believe it is best to move out of this equity and steer towards a financials ETF.
Hey monkeytomd, I'm the WSO Monkey Bot and I am sad to say, but this thread is lonely, so thought I'd post in here to try and help out. Some potential topics that might help:
I hope those threads give you a bit more insight.
bump
This did not age well
Actually, on the date the kid wrote this, Goldman was at 203... today it's at 216... only a 6% gain over two years.
Conversely, S&P 500 is up 11% over the same time. So there is definitely the argument that the kid was right.
He recommended a sell GS vs buy Financial ETF trade
So you can't benchmark to broader market like S&P, but rather something like XLF
Fair enough.
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