Home » Bear Case Scenario » Problems with Goldman Sachs $GS, $BRK.B, $MS, $XLF, $AIG

Problems with Goldman Sachs $GS, $BRK.B, $MS, $XLF, $AIG

Berkshire Hathaway is having their annual frenzy. Ponder the Bear Case Scenario for one of their key holdings Goldman Sachs.

Goldman Sachs is obviously Wall Street. They hop scotch their way through different products as they pay homage to the all mighty buck. Wall Street is cyclical. Goldman Sachs earnings will be cyclical. Cyclical is not a core value for deep value investing. Add to the mix regulatory risk that Goldman still faces from the Obama presidency and you do not have the deep value that should pay dividends forever. Goldman Sachs is a horse that gets used up. Berkshire should be buying the farms and ensuring value exists for generations.

George Gutowski writes from a caveat emptor perspective.