Can investments in BlackRock (BLR) the world’s largest asset firm give me a steady growth opportunity?

Investing in BlackRock, the world’s largest asset manager, offers a unique blend of opportunities and challenges. With over $9.4 trillion in assets under management (AUM), BlackRock stands out for its extensive range of investment products and consistent dividend payouts¹. BlackRock is known for its robust dividend policy. The company has consistently increased its dividend payout for the past 14 years, making it an attractive choice for income-focused investors¹. As of September 2024, BlackRock offers a dividend yield of approximately 3%, providing a steady stream of income¹. This commitment to returning capital to shareholders underscores BlackRock’s financial stability and confidence in its future prospects.

Lets jump directly to the figures of this asset management giant.

1. Revenue and Profit: In the last 12 months, BlackRock reported revenue of $18.69 billion and a net profit of $6.05 billion¹.
2. Earnings Per Share (EPS): The earnings per share (EPS) stands at $40.29¹.
3. Market Capitalization: BlackRock has a market cap of approximately $131.31 billion¹.
4. Shares Outstanding: BlackRock has 148.13 million shares outstanding¹.
5. Valuation Ratios: The trailing price-to-earnings (P/E) ratio is 22.00, and the forward P/E ratio is 20.55¹.

So how did Blackrock became the largest asses firm in the world?

BlackRock was founded in 1988 by Larry Fink, Robert S. Kapito, Susan Wagner, Barbara Novick, Ben Golub, Hugh Frater, Ralph Schlosstein, and Keith Anderson¹. Initially, the company focused on providing institutional clients with asset management services from a risk management perspective. The founders, who had previously worked together at First Boston, aimed to create a firm that prioritized excellent risk management and fiduciary practices¹.

Growth and Expansion (2000-2009)

In 1999, BlackRock went public on the New York Stock Exchange, raising its profile and expanding its client base². The early 2000s saw significant growth, including the acquisition of Merrill Lynch Investment Management in 2006, which expanded BlackRock’s retail and international presence². During the 2008 financial crisis, BlackRock played a key advisory role, helping institutions navigate the turbulent market conditions².

Becoming the Largest Asset Manager (2009-Present)

In 2009, BlackRock acquired Barclays Global Investors (BGI), making it the world’s largest asset manager².

BlackRock holds nowadays significant stakes in pretty much every multinational company on the globe.

Here are some of the notable companies in which BlackRock holds substantial investments:

1. Technology Giants: BlackRock has significant holdings in major tech companies such as Microsoft, Apple, Amazon, and Meta Platforms¹².
2. Financial Services: BlackRock owns stakes in several financial institutions, including JPMorgan Chase and Bank of America¹.
3. Healthcare: The company also invests heavily in healthcare giants like Johnson & Johnson and Pfizer¹.
4. Consumer Goods: BlackRock holds shares in leading consumer goods companies such as Procter & Gamble and Coca-Cola¹.
5. Energy: The asset manager has investments in energy companies like ExxonMobil and Chevron¹.

Conclusion

Investing in BlackRock presents a compelling opportunity for those seeking exposure to a diversified, technologically advanced, and globally integrated asset manager. It’s always hard to tell the future growth, but we can always look back at historical figures. If you would’ve invested $10000 in BlackRock 2004, it would’ve grown including compounding of dividends to an astonishing value of $163000.