Buffett, Not Whitney Will Call the Top for Goldman Sachs (GS)
One of the biggest stories on Wall Street today was Meredith Whitney's downgrade of Goldman Sachs (NYSE: GS) from Buy to Neutral.
Meredith, a noted financial bear, has seen Goldman Sachs as the lone bright spot in the sector. Now she says the stock has gone too far too fast and thus the downgrade. In her note today, Meredith said, "While we are fundamentally constructive on Goldman Sachs over the long term, we prefer to invoke a 'why be greedy' rationale and lock in profits at these levels.
As with her downgrade today, Meredith made headlines back in July when she first upgraded Goldman. Shares of Goldman have risen about 34% since that notable call. While a fine call, Meredith missed much of the 300% run-up in Goldman from the post-Lehman low.
So while Meredith has proven she is a good market timer, she is by no means perfect and further upside in Goldman is not off the table.
So who should you be watching to predict a top in Goldman? I would watch none other than the Oracle of Omaha, Mr. Warren Buffett. If Buffett cashes in his warrants this may signal the top in Goldman. Buffet has Goldman warrants on 43,478,260 shares with a strike price of $115 per share.
Buffett and not Whitney will call the top in Goldman Sachs stocks. When he sells, I would sell too. But this may not happen for a while, maybe not until he is on his deathbed.
Real-Time Market Moving News Two-Weeks FREE http://www.streetinsider.com/premium_content.php
Create E-mail AlertRelated Categories
DowngradesInsiders' Blog
Trader Talk
Stocks Mentioned
-1.76Related Entities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
