Goldman Sachs : The Culture Of Success

Former Goldman Sachs vice president Lisa Endlich draws on her insider's knowledge and access to all levels of management to bring to life a unique company that has long held its mystique intact. The most stunning accomplishments in modern American finance are explored through the story of how Goldman Sachs reached its summit.

Goldman Sachs: The Culture of Success provides a rare and revealing look inside an institution -- until recently the last private partnership on Wall Street -- and inside the financial world at its highest levels. Included here, in a new chapter, is a first look at the history behind the firm's landmark initial public offering.

Reviews:

We all know last year profits at Goldman Sachs and the Big fat bonuses expected for its employees to receive. What is it that these guys do to obtain such level of profits?, well that was the reason to read this book. I never thought this book would be that interesting, the whole history of the Goldman and the Sachs, both jewish immigrants families, and the following consolidation of the firm along the years, its ups and downs, make this book an easy reading.The idea for me was also to understand a little about investment banking and other concepts such as equity trading, long term capital management and others. To tell you the truth, I need further reading but the spark is there and I want to learn more of this subject. I cannot finish this review by saying that also in this book you learn some of the aspects of running this big firm and few lessons of experience by some of the best in this field like Sidney Weinberg and Robert Rubin, both pillars of a company that now may be called a culture of success.

This is the firm that learns. From its origins as a two person broker of IOUs in 1862 to its position today as the world's dominant player in trading, risk management and arbitrage, Goldman Sachs has managed the unthinkable in the world of finance: attaining mind-bending levels of profit growth over a century and a half while maintaining a mythical mystique based on a corporate culture of integrity, intelligence, and humility. It's an improbable feat at best. But after all probability is Goldman's business--measuring it, defying it, and reading into it things that others can't.So what is the secret? How is it that one firm can attract the most brilliant minds in finance, force them into a quasi-military commitment of time and mental energy, and organize that brainpower into a unified profit machine? Many have conjectured, more have envied, but noone on the outside can provide any more than idle opinion.Luckily for the readers of "Goldman Sachs: A Culture of Excellence", they have in author Lisa Endlich a docent of matchless qualifications. A former VP in foreign exchange at the firm, she provides an insider's view that's not a tell all. She's writes well, in a style that honors the Goldman ethos--thorough, absorbing, and critical in the academic sense. While examining the birth and development of each of Goldman's divisions starting with commercial paper, she offers up a rich education in the operations of i-banking and trading for anyone inclined to read in detail.And for the rest of us, there's still plenty. Endlich starts from the premise that Goldman Sachs is all about its people, and she stays consistent throughout. From its inception as a family firm run by Marcus Goldman and his son-in-law Sam Sachs, through its early years as banker to the robber barons, the long reign of the Weinberg family, its reinvention as a trading power and the tenure of master trader Gus Levy and Uber banker John Whitehead, and on into the nineties and the ascendancy of Rubin, Friedman, Paulson, Corzine, and Blankfein, Endlich provides nuanced and sympathetic portraits of brilliant, complex men whose leadership skills are surpassed only by an ability to place personal ego second to the needs of the team. And that, Endlich suggests, is the big secret. That's what makes Goldman so exclusive. The firm absorbs those with superior intelligence who subsume personal need to propel the greater glory of the collective. It's a major irony in one of the prime movers of capitalistic society, but its borne out empirically by the story Endlich tells. Throughout its history Goldman has demonstrated time and again an insatiable institutional desire to win, and to accomplish that by embracing change. Goldman created the commercial paper market, and went on to become a pioneer in investment banking, risk arbitrage, and trading. All along Goldman, the whole organism, developed an intuitive feel for risk and a collaborative approach to deal making that helped it emerge on top time and again. And since its decision to go public, the action that Endlich builds her book around, its business model has only refined and improved.There may be those in the know who believe that the ascendancy of hedge funds and the powerful private equity barons has rendered Goldman's model obsolete. There are others who take issue with aspects of the firm's trading philosophy. Only time will tell whether the naysayers views on the subject have merit. But Goldman has left armies of detractors in the dust for decades now. Bet against it at your own peril.

Any financial news reader is aware of the almost mythical status that surrounds this company, not to mention the money its employees can earn in a good year. And for Goldman Sachs every year is a good year. Well, almost... The company had a few bad years that almost wiped out the company. The book is a good account of the rise of this company from its birth as a small private enterprise until it became a large public investment bank. Lisa Endlich is an ex-employee of Goldman Sachs, as a foreign exchange trader to be more precise. Lisa talks in positive terms about Goldman Sachs, almost humanising it. You could almost believe you are reading the story of a successful athlete that manages to become a champion after many, many defeats and difficulties. Lisa went to great length to do a thorough research and combine stories about people and companies that contributed to the history of making of Goldman Sachs. The book starts with the story of a German Jewish emigrant that arrived in US in 1848, raised five children and had the courage 21 years later to open a brokerage business (called Marcus Goldman & Co. Several other personalities influenced strongly the evolution of this company. The leaders have legend status and they are almost like heads of state for Goldman Sachs. You will learn about founding families of Goldman and Sachs, then the extraordinary Weinberg dynasty, Stephen Friedman, Robert Rubin, Jon Corzine and finally Hank Paulson.The author takes you in and out of the company, so you get to know the inside stories while other macro events occur outside the company. The reading has an almost intimate atmosphere and it makes you feel an insider (to a certain degree). The story telling is great, though some times I found a little bit frustrating the lack of detail in their chronology. I wish I had more facts about historical context. I also found that the stories and the presentation of the events where predominantly about the trading side of the business. From the history point of view, the investment banking business is much more telling than trading, and this part is rather missing or less represented in the book. You also get a glimpse of the history of competition with other companies, the rise of globalisation and liberalisation of trade in Europe. Sadly, the story of China is missing (this is where Hank Paulson brought a major contribution) because when the book was written, China was not making the headlines. The reading is enjoyable and instructive. If you want to understand Goldman Sachs and the making of one of the most successful investment bankers, this is a good source of background information.

I'm an I-Banker with a regional firm and do some business with Goldman. This is a very dry historical book but it is a subject with which I have knowledge and an interest. I enjoyed this book. For history buffs this is an excellent book giving background of a historical perspective of how this company was initially built on excellent commercial paper execution. Also, their troubles at the 1929 stock crash and the lingering effect on the firm are of interest. This book also does a great job describing the management personalities, what they did well and in some cases the problems they caused. Other significant events covered are the Penn railroad failure and the early 90 red ink from lack of control in proprietary trading. This is/was an excellent firm to analyze as it struggled with its partnership structure before finally relenting to go public in 98. For finance buffs, this is a very worthwhile read.

I cannot give this volume a very positive review.This is a very good book to read on the development of the company and on the internal workings of Goldman Sachs- which is one of the world's great investment banks.The difficulty arises from the author's strong bias toward the positive, which is reflected in the subtitle of the work. This bias penetrates the work in all aspects of the operation- culture, people, history, etc. Yes, it is a strong company, but it has made its share of mistakes, most notably in the book in aligning itself with the "false tycoon" Robert Maxwell and his dealings. The various mistakes made along the way are polished over by the author or ignored entirely.Again, I would raise my review from two stars to four with the caveat that the reader view the book as part history lesson and part unabashed advertisement while consuming its wisdom.John KerchevalGeorgetownWashington, DC

I would say this is an excellent book overall...very insightful not only on GS but on Wall St and the financial markets from 1900s - 2000. While the details presented are great there is some overlap and repetition of certain events which can make the read a little slow at times. I would recommed this book to those who are eager to learn about the world of finance and also to those who want to see perhaps a model that became and still is an inspiration to many financial firms across the world. 4 Stars

While this book provides a nice historical perspective on Goldman, it is one sided. Traders or bankers, who's bigger? What about the rest of the firm, who work their pants off and get the crumbs? Supposedly people are the greatest asset of Goldman, but Hank Paulsen said a couple of years ago that 20% of the people are doing 80% of the work. I'd say 20% of the people earn 80% of the money (or more like 95%). While GS is a good company, it is not the only one on the street and it definitely does not have "the best and the brightest" folks out there - they aren't building spacecraft, just making money...

Although it is clear from Ms. Endlich's tone that she nearly workships everything about Goldman Sachs, this is a well researched and competently written book. It covers in detail the history of the bank, paints portraits of some of the key players in some detail and presents a compelling overall picture of the bank's history.Where the book falls short is in its financial and overall business details (compare to "The House of Rothschild" by Niall Ferguson). Overall, and interesting and insightful read.

This is a great book too, just like the one on Sandy Weill's ascent. The book shows why Goldman is great... and bad. Sometimes it glorifies GS too much (yawn at the richest and most powerful people in America allusions) but is certainly an interesting read. I give it two thumbs up!

I read this book right before joining Goldman Sachs and was tremendously excited about it. I joined in 1999, right after the IPO (yes, I missed out). Despite the apparent glorification of the company, I did feel like its culture of teamwork and "long term greed" was present in everything my teams did, which the book does a good job of portraying.It is clear the author appreciates the company very much and that this is a somewhat endorsed biography of the firm, yet I enjoyed reading it nonetheless. It is refreshing to see a former employee write a positive book after so many recent cases of employees leaving only to criticize their former employers.

If you are expecting a balanced book about Goldman Sachs, don't buy it. However, it is the only book available on GS -- undoubtedly because the author had the prior consent of employees who knew it would be written favorably. GS is showered with so many complements and few criticisms, that this books should be passed out to employees as a morale booster or to pump up new recruits! Three other specific points:1) Ms. Endlich was a FX trader for GS in the early 1990's... which becomes painfully obvious. Her bravado and excitement about high profile trades and big traders are elevated to romantic proportions. She entirely lacks any perspective on corporate strategy. Her financial accounting skills are woefully weak; for example, the high "profit" of GS is used in its venacular to cover everything such as a rumored trading profit (pre-expenses) to pre-tax ROE of Limited Partnership compared to after-tax profit of corporations. Finally, her disdain towards the "conservative" banking side of GS leads to superficial views of the whole business. This ain't no Jack Welch book by an author with true business knowledge.2) I am no English language teacher, but shame on the editor(s) of this book!! Her English is horrific and a disgrace to the publisher. For instance, "him and John" should be "John and he"; when someone is speaking usually one uses quotations (pg208); run-on sentences are usually solved by periods; and, the endless use of commas don't replace unclear expressions. Incredible it was published, eh? Henry James would be impressed.3) She misses one big point... "The Culture of Success" of any firm is relative. Although this book is not about the industry, her unbalanced description of GS's strong inward culture is reinforced by her clear bias towards internal benchmarks of what makes success. Looking in the mirror every morning and calling oneself pretty doesn't make a good book. Ultimately, she never addresses the bureaucracy of a large partnership (exemplified by large law firms today), why other firms innovated more products, what departed/booted partners feel, or what do customers really think about GS's famed "client focus". In sum, if you just want to read some propoganda yatta yatta, go ahead and buy it... but then again, there always is reality. I don't work in banking or for any competitor of GS, but I am sure that they may have even a stronger opinion against this book.

As one of the most successful Wall Street titans, Goldman Sachs has a history of empowering very smart and dedicated people. This is that story. It addresses the personalities and culture that drives Goldman to success. For anyone interested in the financial markets, it is a joy to read. Some things I did not know:1) GS focuses on the client and maintains a long-term focus. Long-term greed.2) During the 1980's, GS set itself apart from its competitors when they refused to represent any company that was the aggressor in a hostile takeover. As such, they billed enormous business as a "defense" investment bank. (pg 19)3) "You cannot just be an employee. The firm demands that you be a contributor." (pg 21)4) There is a culture of understatement. "A mild shabbiness seems to be almost a status symbol." (pg 25) The main office does not say Goldman Sachs on the front. It just reads the first two numbers of the address: 85.5) GS started out as a family firm specializing in commercial paper. By the 1960's, it was handling 50% of the country's commercial paper. (pg 34)6) GS was almost ruined when it was involved in the speculating leading up to the crash of 1929. The investors lost 92% of their investment in the infamous GSTC investment trust.7) Sidney Weinberg is considered the father of modern Goldman Sachs. (pg 49) He worked at Goldman for more than 50 years and started out as a helper to the porter: cleaning shoes, and brushing hats.8) Gus Levy became the next senior partner in 1969. Levy was from trading, not banking, and would "prepare the company for the trading-oriented work of the 1980's." (pg 63)9) The next leadership was in teams: John Weinberg & John Whitehead, then Steve Friedman & Robert Rubin, then Hank Paulson & John Corzine. 10) In the 1980's, the profit centers were M&A and arbitrage.11) Historically, GS was known for its excellent people, but not its innovation. One JP Morgan banker said that GS bankers were incredibly good, but predictable.12) Partners were making incredible money in the 1990's, but naturally the competition was fierce: 4000 Vice presidents competing for 32 partner seats. (pg 135) 13) Numerous stories of GS's great traders (Becerra, O'Brien etc...) and how they would make $80 million in trading profits one month, then lose $100 million just one month later. At times, the speculation would get out of hand. One person commented that GS's London trading desk was "testosterone alley." (pg 192)14) In early 1994, the firm was in a crisis. Its top management had stepped down and the company was losing $200 million a month due to heavy trading losses and a bear market. (pg 202)15) GS invented, and still dominates, the block trading market. Great story: Kuwaiti Investment Office (KIO) gives three investment banks one hour to price $2 billion of British Petroleum (BP) stock. GS wins the bids, transacts the stock smoothly and gains a reputation as the firm able to handle block trades. (pg 248)16) Paulson said, "Good firms worry about competition, great companies worry about clients" (pg 250)

Endlich provides a rather interesting story of the firm at which she was once a Vice President. This book chronicles the history of the firm, from its humble beginnings by Marcus Goldman, to the exclusive private partnership, to the modern day publicly traded corporation famous for its all star financial services and clientele. The text focuses on the changes in leadership over the years as each leader lends incredible character to the firm. Although I found this book to be very interesting and well written overall, I think the second half of the book showed favoritism towards the trading aspect of the business, with very little focus given to the banking aspect. It seems that there was a lot of action in trading during the latter third of the century and Endlich's attention to the details is excellent; I only wish that more time had been spent discussing some of the other sides of the business.Must read for anyone interested in the history of one of the world's greatest financial service firms!

I enjoyed Lisa Endlich's book about Goldman Sachs but I felt like there was alot left to be desired. As for the good points, the writing is very clear and the coverage of the 1990s is outstanding. It did give me a bare bones understanding of the history of the firm up until the 1990s, especially about the times of Sidney Weinberg, Gus Levy, and John Weinberg and John Whitehead. But, on the negative side, what this really is is a HISTORY OF GOLDMAN SACHS IN THE 1990S. 155 of 274 pages are devoted entirely to the 1990s and only 88 pages cover 1869-1990 (29 are about the discussion about going public in 1986; and the book starts on page 3). If there is a theme to the book it is Goldman Sach's existing as a partnership and the increasingly intense consideration of going public from 1986 until it finally did in May 1999. There are interesting anectdotes about IPOs (such as Ford) and more about huge trading gains and losses made by the firm. But it didn't read like a book to me but more like a series of articles. She just kind of recaps the highlights from various times, focusing mainly on the 1990s. It was not a bad book but I have read many business books that I consider to me much better such as "Barbarians at the Gate" and "Monkey Business". This one is more comparable to solid but less outstanding efforts such as "Liar's Poker" and "Eboys", in my opinion.....

If you're looking for an objective insight into goldman sachs then i'm afraid this book will disappoint you. It seems from the start that she is in awe of the establishment and her writing only serves to espouse her feelings. I consider it more of 'puppetry'. This bank is definately a powerhouse in the industry but i would wait until a more transparent book is published.(i'm inclined to think her pension is linked to this in some way or the other)

An unauthorized (?) history of the venerable investment bank Goldman Sachs & Co. From its founding by a Jewish peddler to a global financial powerhouse, Goldman Sachs has seen lots of ups and downs which are documented by this book. Written by a former Goldman vice president, the book has more praises for the firm than criticism. All too often it sounds not critical enough of the firm's mistakes. If you come here for insight on how Goldman became successful as a business, you'll be disappointed.

Author Lisa Endlich begins her saga about Goldman Sachs, one of the world's premier investment banks, with its unexpectedly modest roots and leads readers through an enlightening history of the firm, enhanced by her sharp eye for telling details. For instance, she describes partner Bob Rubin's tattered briefcase to illustrate the understatement favored at the firm. Yet Endlich, a former Goldman Sachs trader, isn't the clear-eyed observer that a journalist might be. She doesn't shy away from the difficult parts of Goldman Sachs' history, but she does sacrifice a bit of credibility by expecting her readers to swallow the firm's "client-always-comes-first" party line. And who ever heard of an ego-less banker? At Goldman no less! Despite Endlich's obvious adoration of the firm, we at getAbstract.com strongly recommend this book for its penetrating glimpse into the largely sequestered world of Wall Street investment banking. (getAbstract note: This book's narrative leaves off just prior to Goldman's 1999 initial public offering.)

This book does a good job of telling the overall theme of GS, partnership and emphasis on long-term relationships are good things. The history of the firm is all laid out in front of you, recounting the significant changes in the firm over the years and how it has emerged as the preeminent investment bank. Ms. Jardine tells the story as it leads up to Goldman's IPO.However, I do believe that there are some significant things missing. While the grander history is present (GS is good), the details and annecdotes that would provide that backup are missing (I know it is good, explain to me why). Figures are often quoted without relative measures (revenue in certain areas was X in 1960, and then Y in 1994), which is somewhat worthless if they aren't compared as %'s of the Company's revenue, or some kind of relative measure. Otherwise, this is all apples to oranges, it doesn't make sense. Ms. Jardine doesn't hesitate to make very definitive statements, such as "Goldman only recruits the best." However, she rarely, if ever backs up such statements in any way shape or form. I don't doubt GS recruits the best, but back it up! While her book does cover a lot of ground, other authors have managed to cover greater periods of history and still maintain a hint of interesting story-telling, such as "The Great Game : The Emergence of Wall Street As a World Power, 1653-2000" by Gordon.All in all, I feel that the book is little more than glorified recruiting material. In a world full of solid financial writing, there are better books to spend your time reading.

Not the most breathtaking read, but it suffices in telling a story. I never knew the details of the Goldman Sachs mystique and wanted to know what made their story different than the other ibanks. Now I have a good sense. Definitely recommended to those interested in this realm of business and those who want to get a good feel for the ideals of the company. Most definitely the second half of the book was a bore. And the cliffhanger at the end! I really don't like those unresolved endings...

If you think Liar's Poker is good, then you need to read this book. While it is a slightly favourable portrait of the firm, Goldman Sachs' success is nonetheless indisputable in the industry. The culture of the firm relies heavily on charismatic leaders like Levy and Rubin, and this book has done a good job of highlighting how important culture is to the firm's success.The struggle to go public is well explored in several chapters which are enlightening. Those chapters alone deserve as a must-read!Although this book is presented in a much formal way, I find it a very valuable reference and an easy read. Highly recommended even for people who know nothing (like me!) but curious about the world of investment banks!

Here it is in a nutshell: If you really like Goldman Sachs and want a book that will help justify your feelings, this is perfect. If you are wanting to get some good factual information about I-Banking or Trading, stay as far away from this book as possible. This sounds like a recruiting brochure, too overtly pro Goldman. My recommendation.....a waste of time.

goldman sachs as an institution and as a brand in the financial industry occupies a brand positioning in minds which is what coke would be in beverages or disney in entertainment or christian dior in fashion-CREME DE LA CREME. this book very closely examines and lets the readers share why 85 broad street is not just another address but the ultimate destination - almost like the mecca- of the ruthless and glorious, tough and highly demanding and extremely rewarding field of money. though this book was written before the goldman ipo, it narrates closely how this issue of keeping the culture intact v/s going public been debated for many years within this organisation. what is seldom known outside that in its almost 100 years journey, it has been a handful of people at the top who have lead this partnership to where it stands today.. a must read for anybody who wants to know about goldman and also how the world of wall street works..and why loyal clients of goldman have been so not for years, but decades..

You'd rather read the Pope on the History of the Catholic Church: equally objective and entertaining.

This was evidently the most popular summer book both at Goldman Sachs and at Morgan Stanley. I know I bought it the first day it was out at Borders, and I recommended it to colleagues immediately. Although this book does provide a glimpse into the secret world of one of the top investment banking limited partnerships, it is difficult to evaluate objectively since Ms. Endlich was a former foreign currency trader at Goldman. Nevertheless, the book is well written with what appears to be daylight clarity. The history of the development and evolution of Goldman Sachs is fascinating, and I was particularly interested in the story of how Goldman took over the commodity trading company J. Aron in 1981 and the subsequent inpact that had on Goldman's profitability. Ms. Endlich does have a clear advantage with her access to some of the principals who are still alive, and that may be her chief contribution. Ms. Endlich also deals with several of the near collapses of Goldman Sachs including the failure of Goldman Sachs Trading Corp. in 1929, which took several decades to recover from, and the Penn Central commercial paper scandal of 1969 & 70. There have been other rumored large losses from proprietary trading at Goldman Sachs over the years. Goldman Sachs like Morgan Stanley had a genteel client list and both became top investment banks. Ms. Endlich, however, portrays Goldman as the inventor of the raid-defense in a series of hostile takeovers. It is not clear just how accurate this favorable portrayal of Goldman in the M&A business is. Goldman recently went public with a well publicized IPO. The firm will now be subject to much more stringent public disclosure, and they have already indicated that they will curtail their aggressive proprietary trading. All in all, a well written informative book.

I wonder how much GS paid Lisa for this PR work..