Why own GS shares?

Discussion in 'Stocks' started by noob_trad3r, Jul 20, 2010.

  1. if 43%+ of earnings is given to insiders as bonuses instead of paying out as dividends to shareholders?
  2. Because they are the smartest guys in the room...
  3. Could be but earnings go into the pockets of the insiders and not distributed to shareholders as dividends.
  4. I see two .35 dividend payouts this year with two more scheduled. Small, but divs nonetheless. Owning GS is like owning a hedge fund. Thats the proper way to look at it.

  5. yeah, 0.96% yield. Payout has been the same since 2006.

    Read the book, "Where are the customers yachts"
  6. You want yield? Buy bonds. HF`s dont pay dividends. And GS should be played like a HF.

    No thanks. Sounds like a snoozer. And besides that the commish I pay GS each year pays for some MD`s yacht.
  7. ptrjon


    nood trader...

    on their last annual statement, GS showed that the company made 13 billions dollars, after paying taxes, dividends, and after paying salaries and bonuses.

    Why would someone want to own GS?

    Because it's a company that has made billions of dollars, and has potential to make billions of dollars in the future. It makes sense for a company like this to have a low dividend payout, and to continue to invest earnings into new projects.

    Now, a more interesting question is why would someone want to own DNDN?
  8. I would not buy GS, 10 years from now they can go down in a flame of fury like LEH or BSC.

    Better yet, Buy SPY. You get higher dividends and much lower risk.

    Insiders do not have a stake in the company, Too busy selling GS on the open market and paying themselves huge bonus checks.

    You have officers dumping stock on the open market like its going out of style.

    Not one insider purchase this year,last year etc..

    But tons of insider sales.

    If GS did not pay 50% of earnings as bonus checks and instead distributed as dividends, then that would provide an incentive for insiders to buy and/or hold existing stock. Since Dividend payout and growth would be tied to corporate performance.

    And since insiders would be shareholders getting dividends instead of a bonus check, they would have an incentive to do right by shareholders and also not risk the franchise as well.

    But They got no skin in the game, so they have no incentive to do right for shareholders, only to milk the cow as much as possible and if GS goes under, Too bad. They got paid in cash and can move on.

  9. Good one. :D