Investing in Goldman Sachs

[TripleB]

It could be really good PR, but it's starting to seem that Goldman Sachs rules the world. I'm willing to bet (literally) that they have control over political figures in both developed and emerging markets. Money = Control.

Assuming that GS execs have GS stock options, we can assume that if it's true GS rules the world, then GS stock must go up in the long run, well above the market.

Thoughts on investing in GS within the VP?

[stone]

I guess the senior partners will just pay themselves all the loot they take. If any company management is up to the task of ensuring that no profits find their way to shareholders it surely has to be the Goldman Sachs management. Remember Warren Buffet did not buy any ordinary stock in Goldman Sachs. He bought individually negotiated prefered stock that paid some fixed crazy high dividend.

[Indices]

If Goldman had similar control like Lehman, Bear Stearns and to a lesser extent JP Morgan, you can see how political control is no barrier to going under.

[TripleB]

GS up about 25% in the last 3 weeks since I made this thread. Compared to about 10% of the SP500.

[AdamA]

GS up about 25% in the last 3 weeks since I made this thread. Compared to about 10% of the SP500.

Are you going to sell your shares?

[stone]

Triple B, that's true but looking at a 12 month time frame, SP500 is up 10% and GS is down 25% isn't it. You bought the dip to perfection.

[TripleB]

Triple B, that's true but looking at a 12 month time frame, SP500 is up 10% and GS is down 25% isn't it. You bought the dip to perfection.

Well that's the whole point of the VP, isn't it?

I also happened to call the bottom of the market within 100 points a couple years ago. I happened to get super lucky with that because it was pre-PP days, and I was 50% cash (well before the crash began) because I had a large expense, that I decided at the market bottom to move the cash into total stock market, and take out a loan for the purchase instead.

Yes, I am selling GS on Monday. I don't like to be greedy.

[stone]

Congratulations 

[Jan Van]

Yes, I am selling GS on Monday. I don't like to be greedy.

In cases like this I think I'd prefer putting on a sell stop limit order with something like a 5% trailing stop. Why? Well, last year in August I bought just for fun and practice one call option AAPL when it dipped into the $240s. Then a week later, not wanting to be too greedy, I sold it for a quick $400 profit. I think I would have done a bit better letting it run and putting a trailing stop limit order under it... 

Just an idea...

[Storm]

Yes, I am selling GS on Monday. I don't like to be greedy.

In cases like this I think I'd prefer putting on a sell stop limit order with something like a 5% trailing stop. Why? Well, last year in August I bought just for fun and practice one call option AAPL when it dipped into the $240s. Then a week later, not wanting to be too greedy, I sold it for a quick $400 profit. I think I would have done a bit better letting it run and putting a trailing stop limit order under it... 

Just an idea...

Unfortunately, trailing stop limits don't always help you.  AAPL has had several 10-15% drops in the last year or so and you would have stopped out a long time ago.  I would recommend more of a 7-8% trailing limit, but the experienced traders seem to know algorithmically how to stop you out anyway... /sigh you can't win.

[AdamA]

GS up about 25% in the last 3 weeks since I made this thread. Compared to about 10% of the SP500.

Are you going to sell your shares?

Did you sell them?