The Partnership: The Making of Goldman Sachs Epub ò

The Partnership: The Making of Goldman Sachs Epub ò

The Partnership: The Making of Goldman Sachs [BOOKS] ⚣ The Partnership: The Making of Goldman Sachs ⚡ Charles D. Ellis – Larringtonlifecoaching.co.uk The jury is still out on what the future of Goldman Sachs will look like, but no one can argue that the year old firm has been and, if Warren Buffett has his way, will be the dominant investment bank The The Making of Goldman Epub / jury is The Making ePUB ¹ still out on what the future of Goldman Sachs will look like, but no one can argue that theyear old firm has been and, if Warren Buffett has his way, will be the dominant investment banker and dealer on Wall Street What does Buffett see that we on the outside The Partnership: MOBI :å do not It s all about the people Charles D Ellis has written a landmark book that couldn t come at a better time The Partnership The Making of Goldman Sachs is the colorful and fascinating story of Goldman s rise to power through many life threatening changes in markets, competition, and regulation It Partnership: The Making PDF Í tells the personal history of the men and women who built the world s leading financial powerhouse from a firm that was disgraced and nearly destroyed in , limped along as a break even operation through the Depression and WWII, and, with only one special service and one improbable banker, began the rise that, in half a century, took Goldman Sachs to global leadership A conversation with Charles Ellis Is Goldman Sachs really a lot better than other firms at managing risk The big difference is in the cumulative power of many small details The difference in the speed, accuracy, and extent of communication inside the firm the difference in intensity, focus, and disciplined toughness of the men and women hand selected to work there and real difference in recruiting, training, and compensation All add up to a decisive advantage in management Leaders and co leaders manage Goldman s many business units with rigor and drive risk management is the envy of other banks and coordination is powerful across business units and markets around the world As every Olympic athlete knows, such small differences make all the difference between gold, silver or bronze or no medal at all In the current, very difficult test, Goldman Sachs has come in st again Goldman Sachs is often described as the best managed Wall Street firm Is that true Yes, it is true Goldman Sachs is the best managed Wall Street firm and the best led Management is why Goldman Sachs is consistently rated the best firm to work for and gets top ratings from clients all over the world Superior management is why the firm earns profit, develops effective people, has made itself the market leader in the US UK, Germany, France, China, Japan, and in most major lines of banking business No other firm comes close One of the things you will learn in The Partnership is just how Goldman succeeded in making themselves different from any other Wall Street firm They learned early on that in order to survive, they had to not only make money, but create a culture that was universal, that demanded absolutely loyalty and, most importantly, act as one organism Why does Goldman Sachs put so much weight on its culture Goldman Sachs culture works In the complex, fast changing, global, securities business almost all the important decisions are made in highly specific and complex settings under great time pressure These decisions cannot be made by headquarters and they cannot be deferred They must be made locally by local market and business experts thousands of times every day Rules won t work If rules were written for every type of decision in all those different businesses in all the world s different markets in all the different cultures, the resulting Rule Book would be far too large and complex to read or use Culture its way of working is the universal stem cell that enables Goldman Sachs to operate so forcefully in so many different national markets and in so many different businesses With all its different business activities all over the world, doesn t Goldman Sachs have problems with conflicts of interest Yes The firm certainly has many, many conflicts of interest While it could take a defensive approach and try to avoid or minimize those risks of conflicts, the firm believes the realistic and effective approach is to recognize those risks, be candid about them with clients and counterparties, and actively manage the conflicts The firm strives to deal with each of them in such thoughtful and effective ways that clients and customers will know Goldman Sachs can be trusted to manage conflicts better than any other firm This is, of course, an assumption of enormous responsibility particularly on the scale on which Goldman Sachs operates so it raises the obvious next question Who will watch the watcher.


10 thoughts on “The Partnership: The Making of Goldman Sachs

  1. WRH WRH says:

    This was one of the worst financial books I ve ever read The author spent so much time gushing over Goldman that I thought I was going to be sick Also, he organized the book by subject or person instead of chronological order it was virtually impossible to follow the timing of events that affected the company I did learn some of the background about the company which is the only reason I didn t give it the lowest rating


  2. Doug Doug says:

    The Economist this week has a great statement regarding GS When GS went public in 1999 its prospectus began Our clients interests always come first Our experience shows that if we serve our clients well, our own success will follow Only the most naive investor read that as a commitment to go goodery rather than calculated self interest Unfortunately, the book takes these platitudes at face value when GS does something right, the book gushes about Goldman Values, but when ethical laps The Economist this week has a great statement regarding GS When GS went public in 1999 its prospectus began Our clients interests always come first Our experience shows that if we serve our clients well, our own success will follow Only the most naive investor read that as a commitment to go goodery rather than calculated self interest Unfortunately, the book takes these platitudes at face value when GS does something right, the book gushes about Goldman Values, but when ethical lapses occur, we enter a universe of technicalities and nitpicking, plausible alternative hypotheses, and GS telling its partners to learn to live with the conflicts of interest The amazing thing about the GS story is that it managed to recruit, develop, and promote talent and had a system to have them work together and keep their interests aligned even as it grew and expanded One only has to look at 80s Salomon Brothers, 90s LTCM, and 00s Enron and Lehman to see how easy it is to have a bunch of incredibly smart and ambitious people working together devolve into a Lord of the Flies free for all of greed and self interest


  3. Brian Brian says:

    History of finance fascinates me and this book gives a great history of an important firm in our economy It s sad how a firm that was founded on such amazing principles has lost its way.


  4. Ian Robertson Ian Robertson says:

    Charles Ellis has written the definitive history of Goldman Sachs, relying on candid insight from dozens of the partnership s current and former leaders In many ways the firm s history parallels that of Wall Street, as Goldman Sachs GS was either a leader or near the forefront in the development of many practices advisory services trading desks, block trading, proprietary prop trading, private client services, prime brokerage, commodities trading, forex, hostile takeovers, and of course t Charles Ellis has written the definitive history of Goldman Sachs, relying on candid insight from dozens of the partnership s current and former leaders In many ways the firm s history parallels that of Wall Street, as Goldman Sachs GS was either a leader or near the forefront in the development of many practices advisory services trading desks, block trading, proprietary prop trading, private client services, prime brokerage, commodities trading, forex, hostile takeovers, and of course the benefit of a truly global footprint Readers will learn about the dozens of leaders who shaped GS, how they strove for excellence in all areas, and how and why our modern capital markets have developed What they will not receive however, is any policy perspective on whether or not investment banks should undertake some of their activities at all a glaring omission given the book s length and detail Goldman Sachs is unquestionably the pre eminent investment bank today, and Ellis admiration comes across in his text He unabashedly chronicles the significant steps in its evolution, noting disagreements and differences in style within leadership circles, but never stooping to malign individuals When the firm or partners find themselves offside with New York DA Rudy Giuliani, Ellis highlights the impact on the firm, its operations, and its strategic direction, but he neither moralizes nor impugns an individual s character In one notable instance Ellis actually rises to the defence of a former partner, methodically dismissing both the charges of New York DA Rudy Giuliani and the shoddy journalism at the time by James Stewart, who later added insult to injury by immortalizing his mistakes in his classic book Den of Thieves In short, those looking for character assassination, muckraking, and an expose on the moral failings of Wall Street will have to look elsewhere, including William Cohan s excellent Money and Culture How Goldman Sachs Came to Rule the World, and Greg Smith s highly edited censored Why I Left Goldman Sachs.Though Ellis doesn t highlight them, careful readers will see some of the potential conflicts as they develop For example, there is a short passage on an agreement between GS and British company Woolworths whereby GS would keep the price of Woolworths stock above a certain level, something that would be unthinkable in today s public markets Similarly, the realization by GS leadership that information from unrealized management buy outs MBOs could subsequently be used to help outsiders undertake leveraged buy outs LBOs would appear to cross a line, as would the development of proprietary trading i.e for GS own benefit while simultaneously executing clients trades on an agency basis With respect to the then new field of asset management, Ellis notes The major underwriting firms were definitely not in the investment management business, and they were, back then, explicit that being an investment management would be a clear conflict of interest But that simple policy could not hold up once Wall Street discovered how very profitable the asset management business really was Much gentler words than Rolling Stone Magazine s Matt Taibbi s description of GS as a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money, but with a similar message if an activity can make money and it s not illegal, it will be considered.The book is littered with names that will resonate outside the walls of the partnership and Wall Street Hank Paulson, Robert Rubin, Robert Merton, Fisher Black, John Meriwether, Jon Corzine, and Lloyd Blankfein some of whom are celebrated for further achievement, some for subsequent spectacular failure, and some for both Even though GS early leaders names have largely faded from common parlance, their achievements are still easily recognizable for example the underwriting of Ford s 1956 IPO which subsequently sank about 25% as are the achievements ofanonymous groups such as the mortgage backed bond group who belatedly realized that their investments had an embedded option and a feature known as convexity, and that changes in interest rates would impact homeowners refinancing activities Perhaps a bit esoteric, but it has subsequently been taught to all CFA Charterholders and it is not uncommon to find reference indetailed economic and business writing The Partnership The Making of Goldman Sachs is a worthwhile contribution to the history of Wall Street A bit long and dry for casual readers, the book should be read by those with an interest in Goldman Sachs new GS recruits, prospective GS partners, and those working for competitors , and by those with an interest in the development of investment banking and finance


  5. Dnepro Dnepro says:

    The sole purpose of the book is to glorify GS It is especially amusing to read this book simultaneously with a history of any other bank Citibank Wriston in my case , compare and cut the BS Even Greenspan s memoirs wereentertaining and informative I did not learn anything about economy or finance from this book, again, Greenspan did much better in this respect On the other hand what I ve learned from the book is the fact that if you are not white English speaking male with a law degre The sole purpose of the book is to glorify GS It is especially amusing to read this book simultaneously with a history of any other bank Citibank Wriston in my case , compare and cut the BS Even Greenspan s memoirs wereentertaining and informative I did not learn anything about economy or finance from this book, again, Greenspan did much better in this respect On the other hand what I ve learned from the book is the fact that if you are not white English speaking male with a law degree, you pretty much don t have chances to climb up in GS structure The author assures us GS does not fire ppl, and then the reader discovers GS actually lays off quite a lot and quite often The book repeats over and over again GS grows leaders from within, and then later the reader learns that most of the stars were lateral hires The book reads like badly written management 101 textbook on p 648 there are 13 instances of the root lead ,because GS is all about leadership You will learn that any wrongdoings of GS described in the Den of Thieves are simply not true Similarly you may as well forget what you ve read about GS in When Genius Failed


  6. Nick Black Nick Black says:

    First 1 2 was pretty good, a nice Horatio Alger story with lots of American Jewish pride The latter half and especially the egregious, miserable last fourth paid the price for the inside story If I wanted a firm prospectus, I d order one Only in the Afterwards is it revealed though one has long suspected that Mr Ellis did thirty years work with Goldman Kind of a fraud you ve perpetrated on the reader, sir, I ve got to say So I m thinking I might go work for Goldman Sachs aft First 1 2 was pretty good, a nice Horatio Alger story with lots of American Jewish pride The latter half and especially the egregious, miserable last fourth paid the price for the inside story If I wanted a firm prospectus, I d order one Only in the Afterwards is it revealed though one has long suspected that Mr Ellis did thirty years work with Goldman Kind of a fraud you ve perpetrated on the reader, sir, I ve got to say So I m thinking I might go work for Goldman Sachs after my PhD, or maybe even intern there or something


  7. Mike Graber Mike Graber says:

    Great history on Goldman Sachs, lots of behind the scene stories


  8. Ajay Palekar Ajay Palekar says:

    This book has some flaws, the perspective and tone is too favorable or positive of the firm The writing is organized by person or theme rather than chronologically in a fashion that is extremely difficult to follow at times The book takes many of the platitudes that Goldman Sachs publishes their values very seriously, stressing their good behavior, but rarely dwelving deeply into their ethical shortcomings For example, Goldman s role in the Dotcom Bubble and Credit Crisis is barely touched This book has some flaws, the perspective and tone is too favorable or positive of the firm The writing is organized by person or theme rather than chronologically in a fashion that is extremely difficult to follow at times The book takes many of the platitudes that Goldman Sachs publishes their values very seriously, stressing their good behavior, but rarely dwelving deeply into their ethical shortcomings For example, Goldman s role in the Dotcom Bubble and Credit Crisis is barely touched upon in a substantive way Their influence on government the revolving door and how they utilized high level influence is hinted at, but never truly explored This book had a lot of potential to cast a deeply intimate look at the inner workings of one of the world s most important organization It s also important to note that the primary focus of this book in narrative arc and content matter is to discuss the building and expansion of the firm in the styleof a history than a modern discussion Interestingly enough, while the book is fairly comprehensive in it s detail it does go on for 752 pages it lacks something of great importance, cohesive themes or greater commentary on the topic it discusses Simply put, this book is a collection of historical accounts, facts, and opinions, but it lacks an opinion of it s own The amazing thing about this story is how it explains the system that Goldman Sachs used to recruit, develop, and promote talent and had a system to have them work together and keep their interests aligned even as it grew and expanded Moreover, it dives deeply into the motivations and decisions of key leaders of the firm throughout it s history and does a great job about narrating some of the firms most crucial initiatives and deals All of this is exceptionally valuable insight for anyone interested in business strategy, particularly in the financial sector


  9. Jens Jens says:

    Cronyism has a different implication in the bank industry, as it highly relies on trust and partnership, this makes it different from manufacture or service goods, and in a way promote monopoly in nature This monopolistic trait has determined how banks must gain support from political leaders and absorbing legal risks, in the case of Goldman Sachs, talking about government ruling without mentioning banks will merely fall into empty debates Yet, what does it reveals Maybe the way of team manag Cronyism has a different implication in the bank industry, as it highly relies on trust and partnership, this makes it different from manufacture or service goods, and in a way promote monopoly in nature This monopolistic trait has determined how banks must gain support from political leaders and absorbing legal risks, in the case of Goldman Sachs, talking about government ruling without mentioning banks will merely fall into empty debates Yet, what does it reveals Maybe the way of team management should be investigated and compared to a national context, cronyism while having sense of ownership of the working group you belong to French existentialists had already examined the importance of taking responsibility for oneself, which is preceded existence Taking group responsibility might fall into the delusion of nationalism or even fascism, as the nature of work is retention and always not there yet This will provide insights for a political goal, is not only opening discussion for social responsibility, but the potentiality that we all can participate in Physical worlds have many limitations and we use game to imitate them, what s next to keep working towards this goal


  10. Stone Stone says:

    Unfortunately, this book feels overwhelmingly like a soft sell for Goldman Sachs given the background of the author and the fact that almost anything negative particularly regarding Goldman Sachs infamous role during the subprime mortgage crisis about the company was intentionally sifted out Didn t bother finishing the whole thing as I was quite disappointed The anecdotes however give some memorable yet occasionally gloomy perspectives that one might be interested in.


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