If you had put $1,000 into Goldman Sachs stock 10 years ago, you might be wondering how much gain you would have made or how much that money would have grown. Looking at stock performance over a decade gives you a clearer idea of whether a company has been worth holding onto and how it compares to other investments.
Goldman Sachs (GS) stock has seen its ups and downs, but overall, it has rewarded investors who stayed patient. Based on recent numbers, a $1,000 investment in Goldman Sachs made 10 years ago would be worth about $2,600 today, not including dividends. With dividends reinvested, the value would be even higher, since Goldman pays consistent dividends to shareholders.
For comparison, if you had invested the same $1,000 in the S&P 500 index over the same time, your investment would now be worth around $3,000. That means Goldman Sachs has slightly trailed the broader market, but it has still provided strong long-term returns.
What drives Goldman Sachs’ business
Goldman Sachs is not like any other bank. It is one of the top-tier financial institutions globally, and its magnificently long history dates back to 1869. The bank has its headquarters in New York City, but the bank has a presence in different parts of the world and has dealings with governments, corporations, institutions, and ultra-high-net-worth individuals as its clients.
The firm makes money mainly through the following channels:
- Global banking and markets – This division is, by far, the most significant in terms of operations and accounts for around 70% of the total revenues. It is composed of the fees from investment banking, underwriting of both equity and debt, trading of currencies and commodities, and lending.
- Asset and wealth management – This area brings approximately 25% of the total turnover and is made up of investment management, private banking, and loan services to clients.
- Platform solutions – An emerging and still small part of Goldman’s overall bbusiness,which includes consumer platforms, transaction banking, and other digital services.
In addition, Goldman has also redefined its corporate structure by making use of mergers and acquisitions’ potential in the last ten years. For example:
- In 2022, Goldman acquired robo-advisor NextCapital and Dutch asset manager NN Investment Partners.
- In 2020 and 2019, it purchased Folio Financial and United Capital.
- In 2023, it sold its Personal Financial Management unit to Creative Planning, bringing in a $349 million gain.
These moves reflect Goldman’s effort to stay competitive in a fast-changing financial world.
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Is Goldman Sachs stock a good long-term investment
Today you might wonder if investing in Goldman Sachs is still a smart move. Although past performance does not necessarily predict future results, Goldman possesses multiple strengths that make it suitable for long-term investors, such as
- Solid brand and reputation – Goldman is still among the most trusted and recognized names in finance.
- Mixed business model – From investment banking to asset management, Goldman has several ways to make money which reduces the risk.
- Regular dividend payments – The company has regular dividends, which can be reinvested to provide gradual wealth increase over time.
On the contrary, risks are there too. The economy and the financial markets dictate how well Goldman performs. In slow markets or when there are fewer deals, the company may face a revenue drop. For example, during uncertain economic times, investment banking fees tend to decline.
Besides, Goldman has successfully delivered decent results to investors in the long run. If you value stability, global presence, and constant dividend income as an investor, then their stock it is still a very good option.
How Goldman Sachs compares to other investments
If you had invested $1000, in 10 years you would have had $2,600. So Goldman Sachs stocks have indeed been performing well. But compared to broader market returns, it has been a step behind.
Here is a quick comparison for the past 10 years:
- Goldman Sachs (GS): $1,000 – about $2,600
- S&P 500 Index: $1,000 – about $3,000
- Big tech stocks (like Apple or Microsoft): $1,000 could be worth $5,000 to $10,000 or more
It implies that although Goldman Sachs is a trustworthy stock with continuous profit, it is not the kind of tech stock that will give you explosive growth. To put it more clearly, it has a profile of a solid financial institution that rewards patient investors who want consistent growth and dividends over the high-risk, high-reward ones.
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