Wall Street or Dalal Street…This egrerious culture and mindset of making money…anyhow….is the common factor
Goldman Sachs always remains in the news ~ and this time ,like again and again in recent years, for the wrong reasons
“Why I Am Leaving Goldman Sachs”….Greg Smith,Executive Director and Head of Equity Derivatives Business in Europe,Middle East and Africa
On March 14,2012,New York Times carried this oped by Greg Smith announcing his resignation….impactful way of communicating your resignation…Market Cap of Goldman Sachs dropped over US $ 2 Billion post this oped
You can read it all here in NY Times ……don’t forget to read the interesting responses too
By an arrangement ,Economic Times too carried the piece in their edition of March 15,2012…you can access this in Economic Times here
Earlier in 2011,another Goldman Sachs Employee,Antonio left too citing similar sentiment as Greg Smith…I had blogged on this as below
Monday, June 27th, 2011
Antonio called Goldman Sachs the “World’s largest bookie” and regreted he had not made the switch earlier out of Goldman Sachs
Am sure legendary living Investor Guru,Warren Buffett will not agree with Greg Smith….for Warren Buffett invested heavily in Goldman Sachs in September 2008….in my opinion actually bailed them out in immediately tough Post Lehman debacle times…I had blogged on this earlier in
Did Value Investor and Living Investment Legend, Warren Buffett, invest US $ 5 Billion in Goldman Sachs in September 2008 for reasons other than Value !?
Thursday, December 4th, 2008
In India too it’s no different…a few years ago having been invited to a Capital Markets Seminar organised by one of the big Four Accounting and Auditing Firms, and as I was entering I overheard their Senior Partner,who too had arrived just before me, quipping to his Executive ” Got enough Bakras today “…..Suckers,he meant !…..Greg Smith reveals how Goldman Sachs Managing Directors often referred clients as ‘Muppets’
…and this is precisely the reason I have stayed Independent…not aligning or joining up with any of the leading names in Indian Capital Markets in Investment or Merchant Banking,FIIs,Mutual Funds or even Broking Houses…so that I don’t have to deal or confront with likely situations of daily house bias,prejudiced views,selfserving advisory,toeing the line, dictats,moral conflicts etc….ofcourse Earnings and Driving Revenues remain key objectives…I have no issues on this as Business is not a charity…but Monies can be earned by providing a valuable and honest service to clients rather than by deliberate misselling or self serving advisory or hawking of less than Investment grade,Investments….greed and the need to meet targets often translates to operational and moral recklessness and improper and inapropriate advice and functioning that could cross the line into manipulation,fraud and deceit
….helping Blog readers and Clients and not hustling them is my mindset…and this is what I endeavour to do with very Blog I post,Training Class or Forum I address,and every macro and micro call I make ….without fear or favour…Ofcourse there is the risk attached to every recommendation I make…but as long as I believe in them and that they will add value,I’m alright….
Warren Buffett loves one ‘G’ ~ Goldman Sachs while he shuns another ‘G’ ~ Gold…..check out Pages 17 and 18 in his Shareholders Letter 2011
I think he should love this ‘G’ blog !