Goldman Sachs 2001 Annual Report Goldman Sachs

Letter to Shareholders Core Businesses Business Principles Sept 11 Response Financials Clients

Principle No. 1 Principle No. 2 Principle No. 3 Principle No. 4 Principle No. 5 Principle No. 6 Principle No. 7 Principle No. 8 Principle No. 9 Principle No. 10 Principle No. 11 Principle No. 12 Principle No. 13 Principle No. 14
Our Principles

Superior Returns to Shareholders
Although going public brought some change, one constant at Goldman Sachs is the focus on creating superior, long-term returns for our owners. Despite dramatic shifts in the business environment since we went public in 1999, our stock price rose 68% from our IPO to the end of fiscal 2001. That compares with a decline in the S&P 500 index of 16% for the same period.

As 2001 demonstrated, our businesses are inherently cyclical. Nevertheless, this year also showed the benefits of having breadth and diversity in our businesses. The challenging environment led to lower net revenues in key areas like Investment Banking and Equities in 2001. However, our Fixed Income, Currency and Commodities franchise capitalized on favorable market conditions for their businesses, and produced record results. That performance helped Goldman Sachs generate an 18% return on tangible shareholders' equity despite 2001 being a difficult year. We also remained a leader in our Mergers and Acquisitions and Equity Underwriting, which we believe positions us well to generate strong returns in those businesses when the economic environment improves.

<Principle 3 Principle 4>



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