Founded in 1988, BlackRock (BLK -2.08%) is a relatively new investment company. But it's become responsible for keeping tabs on more than $10 trillion in wealth, making it the world's largest asset manager. Let's explore more about this investment giant, including its history, owners, managers, outlook, and how you can invest in BlackRock.
Overview
What is BlackRock?
For a company that manages more than $10 trillion in assets -- equivalent to roughly 34% of the total GDP of the United States -- BlackRock has kept a relatively low public profile. The New York-based company was founded in 1988 to manage risk and fixed-income assets. Since then, it's diversified to become one of the largest managers of index funds, managing the iShares group of exchange-traded funds (ETFs).
BlackRock launched its initial public offering in 1999 when it reported only $165 billion in assets under management (AUM). A series of mergers and acquisitions, however, dramatically increased the company's profile and assets.
BlackRock also was an integral part of the cleanup of toxic assets in the wake of the Great Recession, when the U.S. Treasury Department hired it to manage subprime securities held by Bear Stearns, American International Group (AIG 1.49%), Freddie Mac (FMCC 1.36%), and Morgan Stanley (MS -1.23%), among others.
The company became a major player in the ETF market in 2009 when it swung a $13.5 billion deal to buy a Barclays (BCS -0.34%) unit that included the iShares line of funds. It was added to the S&P 500 index in 2011.
The company was called on again by the federal government during the COVID-19 pandemic response effort, managing two corporate bond-buying programs and the purchase of mortgage-backed securities (MBS) guaranteed by Ginnie Mae, Fannie Mae (FNMA 0.33%), and Freddie Mac.
The scope and reach of BlackRock has recently been on display around the globe. It has reached an agreement to help Ukraine rebuild its economy after the war with Russia is over; its spot Bitcoin ETF was the first to reach $1 billion in volume; it was hired to sell the assets of Signature Bank and Silicon Valley Bank when they failed; and it became the first global asset manager to be approved for operations in China.
Largest shareholders
Who are BlackRock's largest shareholders?
BlackRock, which has offered shares to the public since its 1999 IPO, is mostly owned by institutional investors, including the Vanguard Group, State Street Corp. (STT -1.51%), Bank of America (BAC -1.8%), and Temasek Holdings, a Singapore state-owned conglomerate. The largest investors include:
| Company | Number of shares | % of total shares | Worth (in billions) |
|---|---|---|---|
| Vanguard | 13.9M | 9.04% | 15.5 |
| BlackRock | 10.1M | 6.53% | 11.2 |
| State Street | 6.3M | 4.05% | 6.9 |
| Temasek | 5.1M | 3.29% | 5.6 |
| Bank of America | 4.8M | 3.12% | 5.3 |
Board of directors
Who is on BlackRock’s board of directors?
BlackRock has 18 members on its board of directors, they are as shown below:
| Name | Title |
|---|---|
| Laurence Fink | CEO of BlackRock |
| Pamela Daley | Former Senior VP of Corporate Business Development for GE |
| Gregory Fleming | President and CEO of Rockefeller Capital |
| William Ford | Chairman and CEO of Gneeral Atlantic |
| Fabrizo Freda | Former President and CEO of the Estée Lauder Companies |
| Murry Gerber | Former Chairman and CEO of EQT Corporation |
| Margaret "Peggy" Johnson | CEO of Agility Robotics |
| Robert Kaptio | President of BlackRock |
| Cheryl Mills | Founder and CEO of BlackIvy Group |
| Kathleen Murphy | Former President of Personal Investing at Fidelity |
| Amin Nasser | President and CEO of the Saudi Arabian Oil Company |
| Gordon Nixon | Former President and CEO of Royal Bank of Canada |
| Adebayo "Bayo" Ogunlesi | Chairman and CEo of Global Infrastruture Partners |
| Kristin Peck | CEO of Zoetis, Inc |
| Charles Robbins | Chairman and CEO of Cisco Systems |
| Hans Vestberg | Chairman and CEO of Verizon |
| Susan Wagner | Former Vice Chairman of BlackRock |
| Mark Wilson | CEO of Reinsurance Intelligence Quotient |
Board of Directors
How to invest
How to invest in BlackRock
To buy shares of BlackRock, you'll need a brokerage account. If you still need to open one, these are some of the best-rated brokers and trading platforms. Here's a step-by-step guide to buying BlackRock stock:
- Open your brokerage account: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Before you hit the "Place Order" button, figure out your budget. Are you in a position to invest in the market? Have you paid down high-interest credit card balances and created an emergency fund? How much can you spend? Do you want to buy all your BlackRock shares at once or periodically, with dollar-cost averaging? These are all very good questions for investors to ask -- and answer.
Next, do your homework. You may want to skip BlackRock stock if:
- You're skeptical of the company's ability to weather severe economic storms.
- You don't like the company's commitment to ESG investing.
- You think BlackRock's investments in fossil fuels will lose value.
- You think BlackRock shares are trading at unrealistically high prices.
- Your portfolio already has enough financial stocks.
On the other hand, you may want to go ahead and buy BlackRock stock if:
- You think BlackRock will continue to be the world's largest asset manager.
- You believe BlackRock's iShares ETFs will continue to be popular.
- You want to invest your money with a company that's trusted by the federal government.
- You'd like to balance your portfolio with a financial stock.
- You think BlackRock stock is undervalued and will rise as it expands into new markets.
- You're excited by BlackRock's expansion into cryptocurrency-related ETFs.
As with any other investment, there's a short answer to whether you might consider investing in this stock: It depends. Factors that might affect your decision include the level of your portfolio diversification, personal risk tolerance, company and industry knowledge, and assessment of BlackRock's competitive position.
Shareholder
Related investing topics
Bottom line on BlackRock
BlackRock may be the biggest asset manager on the block, but that doesn't always guarantee success. Although it was the first firm to record $10 trillion in assets under management, it's also posted the record for the most client money lost by a firm over a six-month period. As the market staggered in 2022, the company reported losing $1.7 trillion in assets. In addition, it's been whipsawed by criticism from both sides for its commitment to ESG investing and its role in financing climate change acceleration.
Keep in mind that if you invest in BlackRock, you're not investing in a company with $10 trillion in assets -- you're investing in a company that manages $10 trillion in assets. Although its role as one of the world's preeminent ETF managers may be extremely attractive, you should treat BlackRock like any other individual stock, as a long-term, buy-and-hold investment that's only part of a diversified portfolio.
FAQ
Blackrock FAQ
Who is the real owner of BlackRock?
No one person or company owns BlackRock. Five institutional investors -- Vanguard, BlackRock, State Street, Bank of America, Vanguard, and Temasek -- own about 25% of the company's stock.
Who is the majority shareholder of BlackRock?
No person or company owns a majority of BlackRock. The largest shareholder is the Vanguard Group, which owned 8.9% of the company's stock in mid-2024.
Is BlackRock the richest company in the world?
BlackRock is the world's leading asset manager and has a market capitalization of roughly $125 billion. According to CompaniesMarketCap, it was the 123rd-biggest company in the world in mid-2024.
Is BlackRock publicly traded?
BlackRock has been publicly traded since 1999.
