198 1 year, Goldman Sachs acquired J-Alang Company and entered a new field of foreign exchange trading, coffee trading and precious metal trading, marking the beginning of diversification of Goldman Sachs, surpassing the scope of traditional investment bank agents and consultants and having a fixed income. By 1989, Alang Company contributed 30% of Goldman Sachs' total profit of $750 million.
In the 1990s, the top management of Goldman Sachs realized that the company would not prosper forever only through agents and consultants. So they set up capital investment business, set up GS capital cooperative investment fund, make long-term investment for 5 to 7 years by underwriting equity, bonds or company's own funds, and then sell them for profit. 1994, Goldman Sachs invested13.5 billion dollars in exchange for a 28% stake in Ralph Lauren, a clothing company, and appointed its own president. Three years later, 6% of the shares were sold for $487 million. The remaining shares rose to more than $5.3 billion. In just three years, Goldman Sachs' capital investment income has increased by nearly 10 times, while the investment banking department of its old business has only quadrupled.
Investment banking, like other industries, a business innovation and adventure can make a company famous and rich overnight. The first junk bond made Dressel company rich quickly. The development of mortgage securities market and the emergence of a large number of household loan packaging and letter transfer businesses gave Rohm brothers unprecedented development opportunities. After tasting the sweetness of innovation, Goldman Sachs regards "taking the lead" and "taking the lead in imitation" as important development strategies.