Have you always had a head for numbers and love making money?
If so, investment banking could be right up your alley! Everyone knows Goldman Sachs & Co, later named Goldman Sachs Group, Inc., trading as Goldman Sachs, is a multinational investment bank with more than 150 years of history. Their mission statement reads: “To advance sustainable economic growth and financial opportunity across the globe.”
So, let’s take an in-depth Goldman Sachs Mission and Vision Statement Analysis to find out what this fascinating company is all about!
Table Of Contents
1 Company History
3 Core Values
- Client Service
Where it began – A family business and a black sheep
Marcus Goldman immigrated to the US by way of Bavaria in 1848. Reports of his background vary, as some state that he was a school teacher, and others mention him working as a peddler, which today is known as a “hawker,” selling items on the street from a horse-drawn carriage in Manhattan.
His lifelong friend from Bavaria, Joseph Sachs, had also immigrated to the US. Goldman’s two daughters married two of Sachs’ sons.
Filling a gap in the market…
Goldman saw a gap in the market as merchants were unable to obtain credit. He bought promissory notes from them and sold them to banks. A promissory note is basically what we would call the modern-day check. This led to him establishing Goldman Sachs & Co in 1869, with the idea of his son-in-law, Samuel Sachs, joining the family business. His own son Henry, sons-in-law Ludwig Dreyfus and Julius Sachs all joined as well.
The firm pioneered commercial paper financing and was a great success. So much so that Goldman Sachs was listed on the New York Stock Exchange in 1896. After stocks were made available, the company was valued at $1.6 million.
Not a family affair anymore…
After Marcus Goldman retired, his son Henry took his place as heir, but his reign was short-lived. After his father’s death in the early 20th century, Henry voiced his support for the Germans during the First World War. The Sachs brothers and the rest of their colleagues supported the Allies, and Henry retired from his position as senior partner in 1917.
The firm continued as a market leader in the industry and expanded, launching a closed-end fund, Goldman Sachs Trading Corp, in 1928. Unfortunately, the Stock Market Crash of 1929 resulted in its failure. The company persevered and kept doing what it did best: offering credit.
Across The Pond And Back
Just over 100 years after the firm was established, it opened its first international office in London, England. The company then started trading in foreign exchange, coffee, and precious metals in the 1970s. This tapped into South American markets as well. A new branch under the umbrella was opened in the 1980s to manage mutual and hedge funds, and it still does to this day. Currently, the company operates in over 30 countries.
The 2008 Recession
Former CEO Henry Paulsen was awarded the prestigious role to become Secretary of State under US President George W Bush and named Lloyd Blankfein the new CEO and Chairman in 2006.
The firm was hit hard in the recession of 2008 and needed a bailout from the US Treasury. The $10 billion payouts were not without repercussion, as the investment had to be repaid with a steep interest rate of 23%. The company that once gave credit had to rely on credit itself.
They had to add to their portfolio…
Fortunately, the company was able to recover with its extensive offering of financial underwriting and advisory division. This included risk management, restructuring, and corporate defense with mergers and strategic acquisitions.
Their reputation as a leading advisor on how to avoid forced hostile takeovers was established in the 1980s and carried them throughout the recession.
Coming out on top!
Goldman Sachs offers investment management and tax planning. This offers its clients solutions on getting the best bang for their buck, so to speak, to ensure that they are able to invest in property, stocks, annuities, and more, while tax deductibles such as charitable donations are carefully monitored.
Blankfein’s reign started with some difficulty. However, ten years after he assumed the position, he was one of the highest-paid executives on Wall Street, with a personal net worth of over $1.1 billion.
The New Normal
David Solomon stepped into the CEO and chairman position in 2019 after Blankfein’s retirement. Only a year later, the fateful pandemic had spread across the world, wreaking havoc on the global economy. The firm donated over $38 million to provide relief to its immediate and most devastated communities; employees, the homeless, the elderly, and others who were affected by the pandemic.
The need for digital workspaces and alternative solutions were quickly accommodated to enable more employees to continue working.
Only enter the office when needed…
The company also called for more investors and partnerships that would accommodate the “new normal.” Their research indicated that although many employees could return to the office, 50% sited that they would seek alternative employment if they could not continue working from home.
Although predictions indicate that full-time work-from-home positions would have pros and cons, the company modeled structures to accommodate it anyway, with hybrid positions where needed. This would enable workers to work longer and more productively at home, but still come to the office for creative and necessary brainstorming sessions.
|Name||Goldman Sachs Group|
|Industries served||Finance, Megabanks|
|Geographic areas served||Worldwide, 30+ countries|
|Current CEO (2023)||David Solomon|
The Vision Statement
Goldman Sachs’s vision statement is to advance its mission to make it accessible for all by conducting its business based on its core values.
The Core Values
Goldman Sachs can anticipate the needs of its clients and strives to serve them with innovative solutions that will provide the best return on their investments.
The firm always hires the most qualified and competent workers with high standards and goals in mind to retain its status as a leading financial advisor.
They value being transparent and accountable. So, always do what is right and maintain the utmost ethical standards of business.
The firm prioritizes cultural and portfolio diversity to partner with like-minded entrepreneurs.
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As of 2019, the company embraced a tagline to appeal to the modern-day meme culture: “you can money.” There were mixed reviews. However, in its simplicity, it was a huge drawing card for the average person to invest with the company, as the campaign offered benefits of up to four times the national average on interest by opening a savings account.
All the very best working at Goldman Sachs!