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If You Invested $1000 in BlackRock a Decade Ago, This is How Much It'd Be Worth Now

Zacks Equity Research
·4-min read

For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as 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 $4,020.3 billion as of Sep 30, 2022.

Fixed Income: BlackRock’s fixed income asset class is evenly divided between passive and active mandates. AUM under this class was $2,350.3 billion as of Sep 30, 2022.

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 Sep 30, 2022, AUM under this class was $637.4 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 $259.2 billion as of Sep 30, 2022.

Cash Management: Cash management products include taxable and tax-exempted money market funds and customized separate accounts. AUM under this class was $694.1 billion as of Sep 30, 2022.

Advisory: Total AUM from this asset class was $3 million as of Sep 30, 2022.

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 2021, it acquired Aperio Group LLC and the Climate Change Scenario Model of Baringa Partners.

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For BlackRock, if you bought shares a decade ago, you're likely feeling really good about your investment today.

A $1000 investment made in January 2013 would be worth $3,420.30, or a 242.03% gain, as of January 12, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

Compare this to the S&P 500's rally of 169.67% and gold's return of 8.42% over the same time frame.

Going forward, analysts are expecting more upside for BLK.

Shares of BlackRock have outperformed the industry over the past year. BlackRock continues to restructure the equity business, which, along with strategic acquisitions, will likely keep supporting revenue growth, and help expand market share and footprints globally. Robust assets under management (AUM) balance will further support the company's top line. Though our estimates for revenues reflect year-over-year declines in 2022 and 2023, the same will increase in 2024 as the operating backdrop becomes more favorable. BLK's capital deployments reflect a solid liquidity position. However, elevated expenses (mainly owing to higher administration costs) are expected to hurt the company’s profits. Its high dependence on overseas revenues is worrisome. The rise in equity market volatility and a fall in asset prices make us apprehensive.

The stock has jumped 6.24% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2022; the consensus estimate has moved up as well.

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Zacks Investment Research