For the umpteenth time: BlackRock does not OWN these percentages of these companies.
Like Vanguard, it only owns or rather holds them as a fiduciary for the owners or holders of its equity mutual funds, mostly index funds, hence that size and skew.
Of course, it now abuses that fiduciary power for its own and its management's political p…
For the umpteenth time: BlackRock does not OWN these percentages of these companies.
Like Vanguard, it only owns or rather holds them as a fiduciary for the owners or holders of its equity mutual funds, mostly index funds, hence that size and skew.
Of course, it now abuses that fiduciary power for its own and its management's political purposes, sofar more than Vanguard, although they are no angels in that regard anymore since Bogle's death, and it also owns some of those shares and percentages as part of its other, indeed more questionable, business lines.
Technically true, but BlackRock and other financial houses "control" enough shares, bonds, etc to direct corporate policy, select compliant board members, steer contracts, etc. Clubs like CFR and WEF, to which they all belong, provide the coordination. Executives and politicians who aren't loyal team players wind up excluded, defunded, and out of the game.
It is simply important to also communicate that they DON'T OWN them/trillions of $s in these shares: they don't get their dividends or capital gains, their fund investors, aka Joe Public, do. Within their index funds, they also cannot make any active investment aka Buy/Hold/Sell decisions, which is also why they try to influence at board level.omsyead and why they push pseudo-index funds, namely those with any other criteria than pure equity market cap weighting, like ESG, 'smart' beta etc..
For the umpteenth time: BlackRock does not OWN these percentages of these companies.
Like Vanguard, it only owns or rather holds them as a fiduciary for the owners or holders of its equity mutual funds, mostly index funds, hence that size and skew.
Of course, it now abuses that fiduciary power for its own and its management's political purposes, sofar more than Vanguard, although they are no angels in that regard anymore since Bogle's death, and it also owns some of those shares and percentages as part of its other, indeed more questionable, business lines.
They vote the shares..pretty sure it is all in favor of ESG.
Didn't BlackRock invent the whole ESG system? Jeez, you can't swing a cat without hitting an evil villain these days.
Yes. But they cannot sell them when they are owned by their passive investment funds if and because they did not get their way.
Technically true, but BlackRock and other financial houses "control" enough shares, bonds, etc to direct corporate policy, select compliant board members, steer contracts, etc. Clubs like CFR and WEF, to which they all belong, provide the coordination. Executives and politicians who aren't loyal team players wind up excluded, defunded, and out of the game.
Yep. What I describe as 'abuse'.
It is simply important to also communicate that they DON'T OWN them/trillions of $s in these shares: they don't get their dividends or capital gains, their fund investors, aka Joe Public, do. Within their index funds, they also cannot make any active investment aka Buy/Hold/Sell decisions, which is also why they try to influence at board level.omsyead and why they push pseudo-index funds, namely those with any other criteria than pure equity market cap weighting, like ESG, 'smart' beta etc..