There’s only one thing that really matters to Goldman Sachs Group Inc. investors, and that’s how the stock performs relative to those of rival banks and the broader stock market.
On that basis, investors shouldn’t be unhappy if Chief Executive Lloyd Blankfein actually steps down at the end of the year, if not sooner. The stock initially dipped when the Wall Street Journal reported that Blankfein was preparing to step down, but it quickly recovered to close Friday up 1.7%, even as Blankfein, in just his 37th tweet ever, threw cold water on the report
Goldman, viewed by many as the world’s most prominent investment bank, takes pride in hiring the best of the best, as witnessed by the number of former Goldman executives in high-ranking government positions over the years.
With that in mind, it’s not enough to be “one of the best” bank stocks during Blankfein’s reign, which began in June 2006 when he replaced Henry Paulson, who became secretary of the Treasury under President George W. Bush. That’s why investors should perhaps cheer, rather than jeer, a change at the top.
Since the end of June 2006, Goldman’s stock GS, +1.66% has run up 80%, while, over that same time, here’s how one key rival and the stock-market benchmarks have fared