Sometimes investors can have too much of a good stock. Goldman Sachs may be our latest example. The financial stock has been on a monster run. It jumped 53.5% last year and gained another 9% in the early days of 2026. Tuesday’s gains swelled its weighting in Jim Cramer’s Charitable Trust — the 35-stock portfolio used by the CNBC Investing Club — to roughly 4.9%. That puts it neck-and-neck with Amazon for our largest position. During ” Squawk on the Street ” on Tuesday, Jim questioned whether we should trim Goldman after such a run. Later, on the Club’s Morning Meeting, he said he would consider taking profits again if the position size were to exceed a 5% weighting. On Dec. 3, we took some Goldman off the table near its then-record highs and after a recovery from October’s post-earnings selloff . On Monday, shares surged to an all-time intraday high above $961. One of Jim’s core investing principles is that “discipline trumps conviction.” Our discipline is to trim a stock’s weighting when it approaches a 5-6% level — so that on any given day, the portfolio’s movement is not directly tied to any single stock. Lightening up on a stock is not an indication of our bullishness. We regularly right-size positions — even “own, don’t trade” Apple — with our investment theses intact. The need to take some profits is a good problem to have and aligns with another of Jim’s core principles: “Bulls and bears make money; pigs get slaughtered.” You need to take profits now and then to actually realize your gains. GS YTD mountain Goldman Sachs (GS) year-to-date performance Indeed, our outlook for Goldman and fellow bank stock Wells Fargo is that there is more upside ahead in 2026. The Trump administration’s push for deregulation provides a significant tailwind for banks after four years of a more stringent Biden regulatory regime. In fact, federal banking agencies plan to ease capital requirements for the nation’s largest banks, which were designed to absorb unexpected losses. This allows Goldman and others to pay higher dividends and lend more. The White House’s stance on antitrust issues is a windfall for investment banking as well. “[Biden] was an obstacle to [Goldman] doing well because of their M & A house and their IPOs,” Jim said during ‘Squawk on the Street’ on Tuesday. “It was always a bizarre low multiple stock during this Biden era.” We’ll learn more about what 2026 holds for the sector once earnings season starts later this month. Goldman Sachs is set to post its fiscal fourth-quarter report on Jan. 15, a session after Wells Fargo’s earnings release. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Our Goldman Sachs stake may soon require action, and that’s a good problem
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