"A Lot Of Wealthy Clients Like To Say, 'I Have My Account At Goldman"

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Another person besides billionaire Jim Clark has also questioned Goldman Sachs’ real value for its clients while speaking to a reporter for the latest issue Bloomberg Markets Magazine.

Clark says Goldman charges fees that are too high, totally screwed him by telling him not to invest in “bit player,” John Paulson (before he returned 590%), and lost him a lot of money while they were managing it at GSAM (he later “angrily” pulled most of it).

And Michelle Clayman, an investor with the firm, told Bloomberg Markets Magazine the real reason people like Goldman Sachs is purely superficial.

From the magazine:

So why do investors keep their accounts at the New York firm? The prestige of the Goldman Sachs name is a big factor.

“A lot of wealthy clients like to say, ‘I have my account at Goldman, blah, blah, blah,'” says Mi- chelle Clayman, founder of New Amsterdam Partners LLC, an investment manager that owned 267,000 Gold- man shares as of mid-January.

Usually people (like Ken Griffin, Warren Buffett) say they work with the firm because its the best but, there’s another theory.

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