PS If you think BSC will also eventually survive the present situation then you could guarantee yourself a 50% return.
Monday, August 6, 2007
Goldman Sachs a Guaranteed 30% return
Yep you read it right! A guaranteed 30% return if you were to buy GS right here. How can that be you ask it looks like its in free fall. Notice I didn't say a guaranteed 30% return in the next month or even in the next year. But if an investor is willing to buy and hold GS and willing to believe they will survive the current turmoil in the credit markets without going bankrupt then I guarantee they will be back to making new highs some time in the future. When that happens you will have earned 30% on your investment. Even if it takes 3 years for them to get back to the highs you would still make 10% a year which is double what you can get in treasuries plus you will get a .70% annual dividend. It is possible you might have to hold through a draw down on your investment but eventually GS IMO will be back to making tons of cash and the market will see that whenever this current crisis passes and it will pass, they all do eventually. Panic like what we are seeing now creates opportunities. If you can keep your head and think rationally you can find great companies that are being put on sale for no other reason than human emotions are running amok. This is how investors like Buffet, Soros and Greenblatt think. Is it any wonder they are billionaires.