Goldman Sachs ranks as the 10th most admired company in America, and tops on Wall Street, according to a recent survey by Fortune Magazine (see the full list here). This should come as no surprise, as in 2007, the company seemingly found the secret sauce. However, past performance is no guarantee of future success. For example, just when people were convinced the firm had dodged all credit bullets, there is a notion that it will take some writedowns because of variable interest entities. Some will applaud any big losses but you have to wonder if it's possible for any firm in a trading environment to stay on top for an extended period. Or is it all dependent on luck?
- Jim