Source URL: https://substack.com/browse/business/post/152054819

Summary

• Larry Fink, CEO of BlackRock, is considered more powerful than Jeff Bezos, with BlackRock controlling over $10 trillion worth of assets.
• BlackRock, Vanguard, and State Street are the largest shareholders in around 88% of S&P500 companies.
• BlackRock pioneered low-cost passive investment strategies, which track indices like the S&P500, allowing them to outsource advisory work to algorithms.
• Passive investment funds like BlackRock's undermine the market for investment by pushing money into a pre-selected group of corporations, regardless of their performance.
• The concentration of ownership by a few powerful asset managers like BlackRock may lead to anti-competitive effects and market concentration.
• BlackRock's influence extends beyond finance, with close relationships with governments and central banks worldwide.
• Asset managers like BlackRock own and extract income from foundational infrastructure, such as schools and bridges.
• The centralization of global capitalism is observed, with a hierarchical network of concentrated ownership ties and rising state ownership.

Mind Map

mindmap
  root((BlackRock#39;s Black Ops))
    (Larry Fink)
      (CEO of BlackRock)
      (Powerful figure)
    (BlackRock)
      (World#39;s largest asset manager)
      (Controls over $10trn worth of assets)
      (Largest investor in S&P500 companies)
    (Passive Investment Strategies)
      (Low-cost investment approach)
      (Tracks indices like S#38;P500)
      (Outsources advisory work to algorithms)
    (Market Concentration)
      (Anti-competitive effects of common ownership)
      (Big Three asset managers control market)
    (Stakeholder Capitalism)
      (Advocated by Larry Fink)
      (Promoted by World Economic Forum)
      (Critics question motives and actions)
    (Relationship with Governments)
      (Close ties with governments and central banks)
      (Influence on policy and decision-making)
    (Ownership of Infrastructure)
      (Asset managers own essential infrastructure)
      (Maximize returns at the expense of others)
    (Centralization of Global Capitalism)
      (Hierarchical network of ownership ties)
      (Control concentrated in few institutional investors)

• Practice Quiz