How Big is BlackRock ? | (Facts, History) | Quester - YouTube

if i ask you a question which company holds the asset more than

the combined value of top 10 tech giants all over the world

what would be your answer but wait a minute

do you think that this question existed in the first place

as we drive deeper into this video you'll get to know more about this

massive beast

blackrock a startup from eight people in a single room to the world's largest

asset management company with over 7.4 trillion dollars asset

under management

the year was 1988 in new york city current ceo Lawrence fink with

others founded blackrock to provide institutional clients with asset

management services from the risk management perspective

by seeing the growth of the company another company named blackstone

entered into a 50 50 partnership with the founders of the blackrock

in late 1994 blackstone sold its stake in blackrock for only 250 million

dollars blackstone founder later described the

selling of blackrock as his worst business decision

ever you know how they say great things happen when you are in

right place at the right time and that's what happened yesterday wall

street suffered its worst losses since just after 9 11.

we are in the most serious financial crisis in generations

the year was 2008 the world was facing global financial crisis we've seen

triple digit swings in the stock market major financial institutions have

teetered on the edge of collapse and some have failed as uncertainty has

grown many banks have restricted lending credit markets have frozen and families

and businesses have found it harder to borrow money

we are in the midst of a serious financial crisis

and the federal government is responding with decisive action

everywhere was chaos people were shifting to new investing trends

giving power to a few dominant asset management firms

one of them was blackrock the us government contracted with

blackrock to help resolve the fallout of financial meltdown

advising institutions to navigate in the financial crisis

that is when the company started swelling up its assets its asset under

management better known as AUM was near to 3

trillion dollars more than india's current gdp

the 2008 financial crisis not only gave a kick to the company

but also changed the mind of people regarding investment

shifting from active to passive investment in simple word

active investment required so-called active participant

who are more aggressive keeps on changing the strategy

and makes quick money and for sure is risky

whereas passive investment is just opposite to it

just like mutual funds a safer bet

as told earlier if you combine the net asset

of top 10 tech companies which includes amazon

apple google facebook microsoft alibaba intel samsung tencent and sony that too

will not surpass blackrock's asset under management

their platform juggles more than 15 trillion dollars

that is equivalent to 5% of all financial assets worldwide

but blackrock reach goes further than just buying and holding stock

bonds and managing pension funds they have shares and voting rights in

european countries blackrock advises central banks

financial ministries big investors like state funds pension

funds insurance companies and foundation also

have shares in german companies apart from mainstream it also does audit

and risk management

to put it into perspective here is another example

if you add up the gdp of countries like australia

russia spain south korea and mexico that too will be less than the combined

asset accumulation of the company can you imagine in your wildest dream

how big this company holds asset there is pretty much

nothing in the financial market that blackrock is not somehow involved in it

before the financial crisis the name was not even familiar

but in years after the global meltdown blackrock appeared

everywhere one of the vast risk management tools at

blackrock alladin stands for

asset liabilities and debt derivative instrument network

with over 65 countries and 6.5 million plus

active users

aladdin keep track of approximately 30 000

investment portfolios owned by top funds like banks pension funds and

insurance companies

it acts as a central nervous system for many of big players in the investment

management industry with the capacity of about 5000

mainframe computers the system can search and analyze global

economic data stock quotes and range of other variables

like earthquake cold spell disaster and even government

decisions

today 21.6 trillion dollars sit on the platform

from just a third of its 240 big clients according to public document that figure

is equivalent to 10 of global stocks and bonds

blackrock the name that people barely heard of it

but pull strings all over the world that dominates and controls the world

can it play god

being involved in so many different industries and capacities

possesses a potential conflict of interest

imagine for instance that some company wants to issue bonds

but blackrock is not only a potential buyer but also

a shareholder of the company who would want to get in trouble with

someone who is not only your biggest stockholder

but also potentially your biggest creditor

here is another example of aladdin company's biggest asset management tool

trillions of dollars are invested based on risk assessment

by a single analytical tool this is called herd mentality

meaning more people use the system the more similar their behavior becomes

it's like software is becoming a mentor for all investment of client

what to choose and what not to

also companies that don't align with the ideas and beliefs of blackrock

can face a potential financial risk if it was a small company

that would not be an issue but the company with trillions of dollars in its

pocket that could change the bigger picture of

the financial market finally i would like to conclude the

video by saying we emphasize on big tech companies for controlling our world

but aren't aware of companies like blackrock and another company vanguard

similar to it that sees the bigger picture

of every segment of the market and literally can shake the whole world

by their just one investment decision

recently blackrock is promoting and shifting its investment strategy

towards environmental sustainability that's for sure is a good move

and also changing the notion of people and other companies

to rethink the environment and use it as an opportunity for investment

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