Chris Bell Chris Bell 'The man on top of the mountain didn't fall there.'
- Vince Lombardi
Chris Bell


Chris Bell Real Estate

Bedford NH

Real Estate Bedford NH

Amherst NH

Real Estate Amherst NH

Merrimack NH

Real Estate Merrimack NH

  • Rasied Split
  • 3 Bedrooms
  • 1 3/4 Bath
  • 1700 Sqft
  • 2 Car Garage
  • 1 Acre of Land
  • Rented

  • Townhouse Condo
  • 2 Bedrooms
  • 1 1/2 Bath
  • 1600 Sqft
  • Full Deck and Patio
  • Large Back Yard
  • Rented

  • Garden Style Condo
  • 2 Bedrooms
  • 1 Bath
  • 918 Sqft
  • Patio
  • Backyard View
  • Primary Home

More Investments

Goldman Sachs (GS) is an investment banking company and it's one of the 30 stocks in the Dow Jones (DJIA). Their market cap is about $70 Billion based on their share price and I believe there's more value than that. Assets minus liabilities equals Equity, and the amount of equity is the liquidity amount. $861 Billion in assets minus $775 Billion in liabilities leaves GS with $86 Billion in equity. The amount of equity is bigger than the total market cap meaning the stock price needs to adjust up much more. In other words, if you have $70 Billion in your pocket you could buy the entire company, liquidate it, and be left with $16 Billion. By the way, the company also has $5.5 Billion in net profit each year, which is meaningless when the equity level is so high, but a complete bonus while the company stays in business. I bought this stock at an average of $158 per share through the middle of 2016. When the stock price gets over $200/share it will be closer to the total liquidity price, so until then I will continue to buy it.

Citigroup Inc (C) is an investment banking company founded in 1812 (Citibank is the parent company). Similarly to Goldman Sachs, a rich person could buy all of the open shares for $130 Billion, just to liquidate the company for $240 Billion in equity. Companies all have assets and liabilities, and liquidating means to sell the assets in order to pay off the liabilities. In the case of Citigroup, if one purchased the company they would be able to liquidate it the next day for $240 Billion. This rich person would get quite richer with a profit of $110 Billion. It seems like a no-brainer to invest in Citigroup and Goldman Sachs for the next 10 years.

Instead of putting all of my money into these companies I've decided to dollar-cost-average over the next 5 years, whereby investing equal amounts per month in order to continue buying it as the stock price lowers. I can also choose to buy less during months when the price is slightly inflated. I bought this stock at an average of $47 per share throughout the middle of 2016. I believe people will start to recognize that these companies are valued at half of their equity and the stock price will soon adjust back up. However, if and while it continues to lower I'll continue to buy it as a very cheap investment.

Citigroup NYSE:C Financial Analysis and Performance