A car company takes a lot of capital, as it turns out. The investors see that henry ford, well, he made his own car in this basement That had to take a sledge hammer and break the wall down so he can get his quadrucycle out at four in the morning. So we're going to take a chance on him. We're going to make a bet. For every hundred dollars we give you, you're going to give us hundred and ten back. And then in return, you own this company. If we ever have to sell to somebody else, you get compensated for that, legally.
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As a $60 billion a year investment bank engaged in market making and asset management for equities, fixed income, commodity and derivative securities for large institutional clients, Goldman Sachs, having been founded in 1869, is arguably the world’s most recognizable name on Wall Street. Known for attracting some of the best financial talent, it is both respected and feared, in some cases being accused of “ripping their clients off” in the relentless pursuit of profits. Defenders of firms like Goldman Sachs make a big deal about how they’re instrumental in the efficient allocation of (financial) capital, but one could argue the concentration of highly intelligent and motivated individuals operating what amounts to a glorified casino is a gross misallocation of human capital, robbing other critical sectors of talent that would otherwise have gone to engineering real solutions, not financial ones.
