2 years ago, on 8 December 2016, I wrote on the Blog that I sold away my Goldman Sachs at a price of US$234.50 and made a good profit.
On 20 Dec 18, the Dow Jones had dropped to a level of 22,859 from its peak of 26,959. A drop of 15% from its peak. A piece of Goldman Sachs is now priced at slightly more than US$168, compared to US$275, more than US$100 off this peak. I bought some of the equity back.
Is there down side risk? Yes, certainly there is with this current bear market. This is expected due to investor irrationalism. Is there up side gain? Yes, in the long term. The PE ratio currently is just 12.29.
Warren Buffett owns this equity. It has made him many good profits. It has made me some good profit. Happy Investing!
