texalope

Time to Discard Price/Book Ratio When Evaluating the I-Banks

Earnings in the IBanks are very lumpy. It's not like selling coke or cereal.
Using a P/E is very risky. Right now, net worth is questionable. There are some assets which may be undervalued too.
I submit that it is impossible to really value these companies at this time. Notwithstanding this, I am an investor in GS because I like owning this kind of business . I like their long term prospects and I feel the stock will reflect their true value over time. If you study their history you quickly recognize this company is a survivor of all kinds of investing climates. They have always attracted superior management that capitalizes on the situations presented to them.
I'm comfortable accepting this as the basis of my investment.