Did you know Goldman Sachs is the second-largest investment bank in the world by revenue and is ranked 55th on the Fortune 500 list of the largest United States corporations by total revenue? From helping tech giants like Facebook go public to redefining consumer banking, it does not follow trends—it sets them.
Why should you care? Because its success story is packed with lessons and ideas that anyone can learn and implement to become successful in business. Whether you’re building a startup, investing, or curious about learning how big business players work, it will give you more than needed. Its story can become an ultimate guide to thinking big and winning bigger.
Ready to crack the code behind its success? Go on!
History of Goldman Sachs: 155 Years of Excellence
The history of the firm is divided into multiple parts year-wise according to the incidents.
- 1869: The foundation of the firm took place in New York City by Marcus Goldman with the goal of providing short-term loans to small businesses.
- Early 1900s: The firm began underwriting stocks, expanding from loans into investment banking and becoming an important player on Wall Street.
- 1930s: The firm grew into the top investment bank, helping with major business deals and assisting the US government during tough financial situations.
- 1990s: It expanded into the tech giant, went public, and shares its shares on the New York Stock Exchange.
- 2000s: Expanded into asset management, consumer banking, and technology. Launched its digital banking platform, Marcus, to reach more customers quickly.
- Present: The giant has faced several challenges and controversies; today, after 155 years, it continues leading in global finances, with operations in investment banking, securities, asset management, and consumer banking.
The motto of Goldman Sach
Providing sustainable growth opportunities for businesses and customers is the motto of the firm. It reflects the company’s commitment to meeting the needs and goals of its clients above all else since its foundation. The firm emphasizes trust, integrity, and delivering the best financial solutions to clients.
Story Behind Name: Goldman Sach
The name of the financial institution comes from its founders, Marcus Goldman and Samuel Sachs. To reflect their partnerships, the firm was named Goldman Sachs & Co., combining their last names. This name marked the beginning of the firm’s expansion into investment banking and reflects it as a family-run business, with Marcus and Samuel playing key roles in the firm’s success.
Four Pillars
The firm’s business model is based on four primary pillars:
| Investment Banking Advising companies and governments on major financial decisions like mergers, acquisitions, and raising money | Global Markets Trading financial products like stocks, bonds, and commodities, serving clients around the world |
| Asset Management Managing investments for clients to help them grow their money through different investment options | Consumer & Wealth Management Providing personal financial services, including wealth management and consumer banking, through platforms like Marcus |
Somewhere it is a result of these pillars that today the firm operates in more than 40 countries and has over 30,000 employees.
High Profile Deals and Projects
Goldman Sachs has been involved in multiple deals and projects to date that have shaped global finances across industries. From major IPOs like Facebook and Uber to advising on mergers such as T-Mobile and Sprint, the firm has played a crucial role in key financial events.
| Year | Deal/Project | Details |
| 1998 | Long-Term Capital Management Bailout | Helped rescue LTCM during the financial crisis to prevent a global collapse |
| 2000 | AOL and Time Warner Merger | Played a major role in the $165 billion merger, one of the largest ever |
| 2008 | JPMorgan and Bear Stearns | Advised JPMorgan on buying Bear Stearns during the financial crisis to stabilize the market |
| 2012 | Facebook IPO | Helped Facebook raise billions in its IPO, one of the largest tech IPOs ever. |
| 2013 | Apple Bond Issuance | Played a key role in Apple’s $17 billion bond offering, the largest at the time. |
| 2014 | Alibaba IPO | Helped Alibaba raise $25 billion in its IPO, the biggest at the time |
| 2019 | Uber IPO | Helped Uber raise $8.1 billion in its highly anticipated IPO |
| 2020 | T-Mobile and Sprint Merger | Advised on the $26 billion merger between T-Mobile and Sprint |
| 2022 | Microsoft’s Acquisition of Activision Blizzard | Provided advice and financing for Microsoft’s $69 billion acquisition |
| 2020-2024 | Global Economic Recovery Efforts | Advised on economic recovery and investment strategies post-COVID-19 pandemic |
Lessons for Entrepreneurs and Investors
Both for entrepreneurs and investors, Goldman Sachs stands as a prime example of how success can be built with vision, strategy, and perseverance. Here are some lessons that can be learned from its journey:
- Start with a Clear Vision: A successful firm with a strong idea and a clear path to reach its goals. Entrepreneurs need to calculate whether their ideas will work or not with some trials analyzing how people will react.
- Take Calculated Risks: It does happen multiple times that plans are made and implemented, but the results are nil. Entrepreneurs and investors must take risks, but before this, they need to make financial boundaries.
- Adapt to Change: The business world is constantly changing, so if you’re planning to start or grow your business to some heights, make sure to check your plans or that your products are following the trend.
- Learn from Failures:– Failure is a part of any success story. Instead of seeing it as an obstacle, entrepreneurs and investors should learn from it, using these lessons to filter their last decisions.
- Build Strong Relationships: You can’t become a successful entrepreneur or investor unless you have a good network. Entrepreneurs should connect with customers, partners, and investors, while investors should foster good relationships with the companies they support.
