Goldman Sachs, founded in 1869, is the world's second-largest investment bank by revenue, with $3.7 billion in fees collected by the second quarter of 2025. Let's explore who owns Goldman Sachs, who runs the banking behemoth, and how you can own shares of the bank.
NYSE: GS
Key Data Points
Who is the owner of Goldman Sachs?
Goldman Sachs (GS -1.11%) was founded by German immigrant Marcus Goldman in 1869. The bank had humble beginnings in a one-room basement office next to a coal chute. It grew steadily through the decades and took its first steps into the initial public offering (IPO) market in 1906 for the iconic Sears, Roebuck, & Co. The bank gets credit for being among the first institutions to focus on price-to-earnings (P/E) ratios rather than book values to value companies.
In addition to its financial clout, Goldman has become politically powerful over the last few years, with several key executives serving in the federal government:
- Robert Rubin worked as the Treasury Secretary for former President Bill Clinton.
- Henry Paulson served as former President George W. Bush's chief financial advisor.
- Steve Mnuchin held the top Treasury Department job under President Donald Trump in his first term.
- Jon Corzine was a U.S. senator from New Jersey from 2001 to 2006 and governed the Garden State from 2006 to 2010.
The company took a massive hit to its reputation during the 2007-2009 financial crisis that led to the Great Recession when it was discovered that Goldman had been pushing subprime mortgage-backed securities to investors, even when it knew there was a dangerous bubble in the U.S. housing market.
Investing in bank stocks has become a bit less of a sure thing in the last couple of years. Goldman Sachs has slowed in its growth, with a 26.5% increase in their earnings per share and a 20.1% growth in net income since 2024.
How to invest in Goldman Sachs
So, you're interested in investing money in Goldman? Here's how to start:
- Open your brokerage account: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Next, do your homework, especially about bank stocks. You may want to skip buying Goldman Sachs stock if:
- You believe that deals for investment bankers will continue to slump.
- You don't like many of the companies that Goldman is advising.
- You expect that Goldman's workforce trimming will hurt its bottom line.
- You're wary of Goldman's reputation.
- You don't know much about the bank's business.
- Your portfolio already has enough financial stocks.
On the other hand, you may want to go ahead and buy Goldman stock if:
- You think Goldman will continue to be one of the world's top investment banks.
- You believe interest rates will fall and spark renewed interest in mergers and acquisitions.
- You expect Goldman's political connections will continue to benefit shareholders.
- You'd like to balance your portfolio with a stock focused on investment banking.
- You think Goldman's stock is undervalued and will rise even higher.
- You're optimistic about Goldman's future.
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The bottom line on Goldman Sachs
There's no doubt that Goldman Sachs is one of the world's preeminent investment banks. It's worked to recover its reputation in the wake of the 2007-2009 financial crisis, and Goldman continues to be a powerful political force. But the last three years have been difficult for the investment banking business, and while Goldman is technically now a bank holding company, its bottom-line numbers have slumped.
As always, review your personal financial situation carefully before investing in stocks. If you decide to buy Goldman stock, you should be optimistic about the company's future, understand its business and direction, and be prepared to stick to a proven buy-and-hold strategy.
