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Goldman Sachs net worth: Does ‘speculate to accumulate’ really work?

Goldman Sachs’ business model revolves around helping companies to find and make money. As the Goldman Sachs net worth shows, they’re very good at what they do.

What was once one man helping to connect companies and investors is now a leading investment bank, with 34,400 employees, $37.7 billion in revenue and stakes in Facebook, Uber and Spotify.

Goldman Sachs initially started as a commercial paper trader in the 1860s. Marcus Goldman would pair small businesses with investors that were willing to provide short-term funds, taking a small cut from each deal.

Goldman Sachs net worth - Compelo

Goldman brought Samuel Sachs into the fold in the 1880s. With him on the team, the company pursued overseas deals. Likewise, they moved on from small businesses to focus on bigger clients.

By 1999, they were ready to go public with an IPO of $3.7b. As a result, Goldman Sachs was worth $30 billion. However, thanks to a number of smart investments and expansions, the Goldman Sachs net worth is now far higher.

Goldman Sachs net worth - Compelo

As a result, Goldman Sachs’ market cap now stands at $89.1 billion, having climbed over the years. But how does the finance company make money?

Goldman Sachs net worth: How is the business monetised?

The company is divided into four sectors. These are investment banking, client services, investing and lending and investment management.

Goldman Sachs net worth - Compelo
Wikimedia/Paulm27

Despite owning stock in some of the world’s biggest companies, investing and lending isn’t their biggest earner. The division brought in $4.08b in 2016. This makes it the lowest earning part of the company.

Investment management, through which they manage other companies’ stakes, made $5.79b. Investment banking, through which companies are given advice on purchases and raising capital, earned $6.27b.

However, the client services division is the company’s best area, earning $14.47b. This division is in charge of buying and selling stock for their clients, with a cut taken from each deal.

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