We are buying 10 shares of Goldman Sachs at roughly $867. Following the trade, Jim Cramer's Charitable Trust will own 160 shares of Goldman, increasing its weighting in the portfolio to 3.6% from 3.4%. We're dipping into our cash, which makes up a mid-teens percentage of our portfolio, to make a small buy during Thursday's market sell-off. We are not buying the heart of the AI trade — semis and industrial infrastructure stocks — but Goldman shares are down roughly 7% on concerns that pushback against data centers could mean fewer AI-related IPOs and fundraising deals to support the buildout. Investment banking, including advisory and debt and equity underwriting — expected to make up about 36% of total company sales in 2027, according to FactSet. But the stock's haircut since this summer already prices in a slowdown in AI-related financing while overlooking the big equities and FICC trading businesses that thrive on this volatility. The stock could have more downside room if this anti-data-center trade continues. However, in times of market volatility, we like to fall back on companies that…
We're dipping into our large cash pile to buy this bank on Thursday's sell-off
In short
The trust acquired 10 shares of Goldman Sachs at around $867 each, increasing its total position to 160 shares and expanding its weighting to 3.6%. Although concerns linger over future artificial intelligence investment banking revenue, managers believe resilient equities and FICC trading units will buffer the bank. In addition, the firm returns capital through a 2.3% dividend yield and consistent multibillion-dollar quarterly stock buybacks. Beyond this transaction, the trust is evaluating further additions to Boeing as its stock also faces downward pressure.
Key points
- The purchase increased Goldman Sachs' portfolio weighting from 3.4% to 3.6% while drawing…: The purchase increased Goldman Sachs' portfolio weighting from 3.4% to 3.6% while drawing from a mid-teens cash reserve.
- Investors benefit from steady shareholder return mechanisms, including a 2.3% dividend yi…: Investors benefit from steady shareholder return mechanisms, including a 2.3% dividend yield alongside multibillion-dollar quarterly share repurchases.
- Portfolio managers are also monitoring Boeing for further purchases, noting the aerospace…: Portfolio managers are also monitoring Boeing for further purchases, noting the aerospace firm has no direct exposure to the data center buildout.