I recently initiated a position in Goldman Sachs for several reasons. I believe the recent Malaysian scandal created a lot of fear about the possible financial repercussions of this 1 billion dollar fraud. In any cases this issue could drag for years in courtrooms and will probably be resolved off court by mutual agreement.
The company still execute in key metrics. They buy back their shares over time / EPS wen down this year because of specific provision tax and it will resume upward fairly shortly.
Also their trading division is making a lot of money see below graph. impressive stats!!
Valuation is really to cheap to ignore. If Warren Buffett adds to his position @ 236$/ share I am Happy to buy Goldman Sachs @ 198$/share!!
The company is also looking to grow in daily banking with for example a recent partnership with apple for Credit card, that will be announced soon. The key thought here is that Goldman Sachs will still do well in any given economy or markets.
The dividends are also headed in the right direction for long term income lovers 🙂