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And what a great Spring it's going to be! Back in November we published an article here on leadership titled Thinking like a Winner! It featured Warren Buffet, and his purchase of Goldman Sachs stock and options. While I can't say for certain, looking back now, It would appear to me that his timely intervention on behalf of Goldman Sachs saved that institution from the fate of Merrill Lynch. His action also temporarily paused the domino-like cascade of failures that large American financial institutions were experiencing, and further demonstrated to the federal government that immediate intervention was necessary on a stepped-up scale to prevent the collapse of the entire financial sector of business. To this I say again, well done! ...and more... Thank You! Yesterday, Goldman Sachs stock opened at $115.21 a share. Why is this important? Two reasons; First, if you had followed Warren Buffets example and purchased Goldman Sachs stock at any time between then and now, even without obtaining the generous compensation Mr. Buffet received for his initial investment, you would be earning a hefty profit, especially if you had purchased GS right before Christmas when it was hovering at $50 a share. Right now, today... that represents an approximate 230% return on your investment in five months! All for just buying stock at Christmas time and holding onto it for awhile in a sign of support for the besieged American economy... I'm just saying. Second... his sales agreement also included an option to purchase additional GS shares at $115 a share. He expected Goldman Sachs to exceed that, and wanted to lock in an option to buy additional GS stock at one-one five. You have this option right now as well as GS opens this morning at $114.22 I might be jumping the gun just a bit, however over the next ninety days, I expect GS will climb to somewhere in the range of $132-$150 and then stabilize as it waits for the rest of the American economy to catch up and begin the 2009 recovery in earnest. I'm seeing news reports that Goldman Sachs is both ready and willing to repay the TARP loan it received last November and has not done so only on account it's waiting for approval on that move from the federal regulators that have also taken a stake in GS. Look for some more positive movement in the price around or immediately after the 15th when they have their conference call to announce their 1st quarter results. In related news, Goldman Sachs Banker Bryan Trott will be leaving to startup his own merchant banking firm, BDT Capital Partners. According to the Wall Street Journal, BDT Capital Partners will focus on investing in family-controlled and entrepreneurial companies, and advising them. With a two billion dollar initial investment fund, this is a big win for the small and medium-sized business sector and represents a significant shift in leadership towards building new companies and supporting privately held companies within the United States. Reference:
http://blogs.wsj.com/deals/2009/03/30/byron-trott-to-leave-goldman-sachs-warren-buffett-signs-on/
On Google
Google has taken plenty of heat recently, with numerous articles showing up on how Google stock prices are currently overvalued, and how it should continue to move down in the near future. This is an overblown affair with plenty of hype from parties that have plenty to gain, but only at the expense of Google. Google has demonstrated great leadership throughout the financial crisis of 2008-2009 by delivering timely news and commentary, and providing software tools for individuals and small businesses. In addition, they are doing their part and have also committed significant resources to kick starting the economy with the $100 Million Dollar (This year alone!) Google Ventures Fund which opened for business last Monday. This fund will support innovation and encourage new technology and business development in the consumer internet, software, hardware, clean tech, biotech and other hand-picked industries. They are currently taking applications from anyone! So if you have a good idea, need to expand your business, simply want an experienced partner, or to have your expansion underwritten, or even simply funded, you should contact them. It doesn't get any easier than that. Never has there been a better time to start a new company! Google Ventures Fund: http://www.google.com/ventures/
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