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If You Invested $1000 in BlackRock 10 Years Ago, This Is How Much You'd Have Now

Zacks Equity Research
·4 min read

For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.

What if you'd invested in BlackRock (BLK) ten years ago? It may not have been easy to hold on to BLK for all that time, but if you did, how much would your investment be worth today?

BlackRock's Business In-Depth

With that in mind, let's take a look at BlackRock's main business drivers.

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BlackRock Inc., headquartered in New York, offers products that span the risk spectrum, including active, enhanced and index strategies through a variety of structures that include separate accounts, mutual funds, iShares exchange traded funds (ETFs) and other pooled investment vehicles.

BlackRock manages its AUM through the following categories:

Equity: BlackRock’s equity AUM reflects the diversity of its business model and includes a wide range of both active and passive strategies. AUM for this class was $5,034.4 billion as of Jun 30, 2021.

Fixed Income: BlackRock’s fixed income asset class is evenly divided between passive and active mandates. AUM under this class was $2,712.2 billion as of Jun 30, 2021.

Multi-Asset Class: BlackRock’s multi-asset class team manages a range of personalized mandates that leverages its broad investment expertise in global equities, currencies, bonds and commodities and its extensive risk management capabilities. As of Jun 30, 2021, AUM under this class was $748.8 billion.

Alternatives: BlackRock Alternative Investors manage the company’s alternative investment efforts, including product management, business development and client service. AUM under this class was $252.8 billion as of Jun 30, 2021.

Cash Management: Cash management products include both taxable and tax-exempted money market funds and customized separate accounts. AUM under this class was $727.6 billion as of Jun 30, 2021.

Advisory: Total AUM from this asset class was $20.3 billion as of Jun 30, 2021.

In 2017, BlackRock acquired the First Reserve Energy Infrastructure Funds and Cachematrix. In 2018, it acquired Tennenbaum Capital Partners and the asset management business of Citibanamex. In 2019, the company acquired Paris-based eFront. In February 2021, it acquired Aperio Group LLC.

Bottom Line

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in BlackRock ten years ago, you're likely feeling pretty good about your investment today.

A $1000 investment made in August 2011 would be worth $5,820.59, or a gain of 482.06%, as of August 24, 2021, according to our calculations. This return excludes dividends but includes price appreciation.

The S&P 500 rose 285.39% and the price of gold increased -1.70% over the same time frame in comparison.

Analysts are forecasting more upside for BLK too.

Shares of BlackRock have underperformed the industry so far this year. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters. Its second-quarter 2021 results were aided by growth in revenues, partly offset by higher costs. Supported by a strong liquidity position, the company’s initiatives to restructure the equity business along with strategic acquisitions are expected to keep aiding revenues, and expand its global reach and market share. Steadily improving assets under management (AUM) balance will further support top-line growth. Its capital deployment activities look sustainable, through which it will enhance shareholder value. However, elevated expenses (owing to higher administration costs) might hurt the bottom line. The company’s high dependence on overseas revenues makes us apprehensive.

Shares have gained 6.47% over the past four weeks and there have been 5 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
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