Larry Fink - The Most Powerful Man in Finance | A Documentary

Summary

The video narrates the rise of Larry Fink, the founder of BlackRock, from his early career setbacks to creating one of the world's largest asset management firms. After a major trading loss, Fink left First Boston to launch BlackRock, which pioneered risk management through mortgage-backed securities and sophisticated financial engineering. The company grew exponentially, handling trillions in assets, and became a dominant force in global finance. Fink's strategic use of technology and ETFs positioned BlackRock as a leader in investment management, giving him unparalleled influence in the financial world.

Takeaways

• 📉 Larry Fink suffered a $100 million trading loss in 1986, leading to his departure from First Boston.
• 🏦 Post-failure, Larry Fink founded BlackRock, which later became a leading global asset manager.
• 💼 In the 1960s, California experienced significant political change, influencing Larry Fink's early life and education.
• 🎓 Fink pursued a political science degree at UCLA and later an MBA, aiming for a career in politics.
• 💼 He started his career as a bond trader at First Boston, becoming the youngest manager and excelling in the mortgage market.
• 💡 Fink was instrumental in creating mortgage-backed securities, a financial innovation that had profound impacts.
• 📈 After a significant loss, Fink met Steve Schwarzman, who invested $5 million to start Blackstone Financial Management.
• 💹 BlackRock grew rapidly, reaching $8 billion in assets under management within five years.
• 🏢 Fink's investment philosophy emphasizes understanding and calculating risk before making investments.
• 🏦 BlackRock separated from Blackstone and was later acquired by PNC Bank, which Fink used to buy out Blackstone's ownership.
• 🎨 As a billionaire, Fink also invested in art, considering it a strong inflation hedge similar to real estate.

Q & A

Who is Larry Fink, and why is he significant in the world of finance?

Larry Fink is the founder of BlackRock, the world's largest asset management firm, overseeing trillions of dollars in assets. He is a key figure in the financial world due to his role in developing mortgage-backed securities and his firm's massive influence on global markets.

What major setback did Larry Fink face in 1986, and how did it impact his career?

In 1986, Larry Fink suffered a $100 million loss in just one quarter while working at First Boston. This loss severely damaged his reputation, leading to his eventual exit from the firm. However, it became a turning point that pushed him to start BlackRock.

How did BlackRock initially start, and who were its early investors?

BlackRock started as a joint venture called Blackstone Financial Management with an initial $5 million investment from Steve Schwarzman, the founder of Blackstone. Larry Fink convinced Schwarzman and his partner Pete Peterson to invest in the idea, despite his tarnished reputation.

What role did Steve Schwarzman play in the early days of BlackRock, and how did his relationship with Larry Fink evolve?

Steve Schwarzman was an early investor in BlackRock through Blackstone. However, their relationship soured when Fink wanted more autonomy for BlackRock, which led to a split. Eventually, BlackRock separated from Blackstone, and Fink bought out Blackstone’s stake in the company.

What innovation did Larry Fink help pioneer in the early 1980s, and how did it contribute to financial markets?

Larry Fink was one of the architects behind the development of mortgage-backed securities, which transformed individual mortgages into tradable financial instruments. This innovation revolutionized the financial markets, although it also contributed to the later 2008 financial crisis.

How did BlackRock build its reputation as a ‘problem solver’ on Wall Street?

BlackRock built its reputation by helping companies, like GE, restructure and manage complex portfolios of problematic assets. The firm's expertise in risk management and financial engineering made it the go-to firm for handling difficult financial challenges.

What is financial engineering, and how did BlackRock use it to gain a competitive edge?

Financial engineering involves restructuring and repackaging existing financial securities into new ones to mitigate risks or create value. BlackRock leveraged financial engineering to help companies deal with complex assets, which became one of its key competitive advantages.

Why did Larry Fink advocate for using technology and data in financial management?

Larry Fink was one of the first to recognize the importance of technology in finance, using computing power to analyze cash flows and risk in mortgage-backed securities. He believed that a data-driven approach would allow for more precise investment decisions and risk management.

How did BlackRock’s focus shift after the 2008 financial crisis?

After the 2008 crisis, BlackRock shifted its focus away from risky fixed-income derivatives and began acquiring ETF (Exchange Traded Funds) businesses. This move allowed the firm to tap into the growing market of smaller retail investors, significantly expanding its asset base.

What is Larry Fink’s approach to risk management, and how has it shaped BlackRock’s investment strategy?

Larry Fink places a strong emphasis on understanding and managing risk. His approach involves not making any investments unless the risks are fully understood and calculable, which has shaped BlackRock’s reputation as a firm focused on risk-conscious investing.

Outlines

00:00

💼 Larry Fink's Early Setback and BlackRock's Rise

Larry Fink, once a Wall Street darling, suffered a $100 million trading loss, which led to his departure from his firm. Despite this setback, Fink went on to create BlackRock, a global asset management firm managing trillions of dollars. His innovative strategies in financial technology and asset management helped BlackRock become a dominant force in the industry.

05:02

🤝 Fink's Downfall and His New Partnership

After his significant loss, Fink became an outcast in the investment world, with no firms willing to hire him. Determined to regain his status, he met Steve Schwarzman of Blackstone, who believed in Fink’s talent and provided $5 million to start Blackstone Financial Management. This partnership allowed Fink to re-enter the financial world, with Blackstone backing his vision.

10:03

🏗️ The Rise of BlackRock and the Split from Blackstone

Fink and Schwarzman's partnership flourished, but as Fink aimed to grow BlackRock, tensions arose due to conflicting visions. Fink eventually severed ties with Blackstone, selling Blackstone's stake to PNC Bank. This move allowed Fink the freedom to grow BlackRock into a financial powerhouse, setting the stage for its dominance in asset management.

15:04

📊 BlackRock's Breakthrough with Risk Management and GE

In 1994, BlackRock gained significant recognition by helping General Electric manage a complex portfolio of mortgage securities. Fink’s innovative financial engineering and use of advanced analytics turned this challenge into a major success, further solidifying BlackRock’s reputation as a go-to firm for managing complex assets.

20:06

🎨 Larry Fink’s Strategy: Art and Real Estate as Wealth Assets

Larry Fink, now a billionaire, emphasized the importance of investing in art and real estate, believing these assets are better stores of wealth than gold, especially during inflation. Platforms like Masterworks have made it easier for investors to buy shares of multi-million dollar artworks, reflecting Fink’s philosophy on alternative investments.

Keywords

💡Black Monday

Black Monday refers to October 19, 1987, when stock markets around the world crashed, leading to a significant decline in stock prices. In the video, it is mentioned as a backdrop to Larry Fink's career, highlighting the volatile nature of the financial markets and the context for his later success.

💡Asset Management

Asset management involves the oversight, investment, and administration of financial assets such as securities and other investments. In the script, asset management is central to the narrative, particularly in the rise of BlackRock, which Larry Fink helped build into a major player in this field.

💡Mortgage-Backed Securities

Mortgage-backed securities are financial products sold to investors that are backed by a pool of mortgages. The video mentions Larry Fink as one of the architects behind this financial innovation, which became a significant factor in the financial crisis of 2008.

💡Risk Analytics

Risk analytics is the use of mathematical techniques to assess the potential risks associated with financial investments. The video emphasizes Larry Fink's focus on risk analytics as a key differentiator for BlackRock, helping the company to manage and mitigate risks for its clients.

💡Financial Engineering

Financial engineering involves the design and development of complex financial products and strategies. In the context of the video, financial engineering is highlighted as a key competency of BlackRock, particularly in repackaging and evaluating complex assets like mortgage-backed securities.

💡ETFs (Exchange-Traded Funds)

ETFs are investment funds that are traded on stock exchanges, allowing investors to buy and sell shares throughout the trading day. The video discusses how BlackRock expanded into ETFs, which have become a significant part of their business and a way for individual investors to gain exposure to a broad range of assets.

💡Index Fund

An index fund is a type of mutual fund with a portfolio constructed to match or track the components of a financial market index, like the S&P 500. The video script mentions index funds as a simple and effective way for most investors to build wealth over the long term.

💡Financial Derivatives

Financial derivatives are financial instruments whose value depends on the value of an underlying asset or group of assets. The video discusses how the unchecked growth of financial derivatives contributed to the financial crisis of 2008.

💡BlackRock

BlackRock is a global investment management corporation, mentioned extensively in the script as the company Larry Fink helped to build. It is now one of the world's largest asset managers, with significant influence over financial markets.

💡Larry Fink

Larry Fink is the CEO of BlackRock and a central figure in the video's narrative. He is portrayed as a key innovator in the financial industry, with a focus on risk management and asset growth, shaping the trajectory of BlackRock and the broader financial landscape.

💡Risk Management

Risk management is the process of identifying, analyzing, and accepting or mitigating unwanted risks. In the video, Larry Fink's emphasis on risk management is highlighted as a critical factor in BlackRock's success and a lesson learned from his earlier career setbacks.

Highlights

Larry Fink's $100 million trading loss at First Boston in 1986, which led to his departure from the company.

Fink founded BlackRock after his failure, which later became the largest asset management firm in the world.

BlackRock now manages over $7 trillion in assets, with an additional $20 trillion through proprietary software.

Larry Fink's early involvement in creating mortgage-backed securities, which became central to the 2008 financial crisis.

Fink's early career success in bond trading at First Boston, where he became the youngest department manager.

The introduction of computing power to the trading desk in 1982 revolutionized mortgage cash flow analysis.

Fink's $1 billion profit for First Boston, making him the most profitable man at the firm before his major trading loss.

Fink's innovative use of financial engineering and risk management, which became a cornerstone of BlackRock's success.

The pivotal partnership with Steve Schwarzman of Blackstone, leading to the creation of BlackRock in 1988.

The eventual breakup with Blackstone in 1994, after Fink wanted more control and stock options to expand BlackRock.

BlackRock's breakthrough moment came when it helped General Electric offload toxic mortgage assets in the early 1990s.

Fink's strategy of using quantitative analysis and algorithms to assess risk revolutionized asset management.

By 1999, BlackRock had gone public and became the fifth-largest asset manager in the U.S.

BlackRock's dominance in ETFs, controlling nearly half of the U.S. market, helped democratize investing for smaller investors.

Fink's influence over global financial markets, with BlackRock becoming a major shareholder in nearly every public company.

Transcripts

[Music]

it was a year before the Black Monday

crash Wall Street darling Larry thinkink

suffered a 100 million trading loss I

was so angry at myself I was just

mortified at myself humiliated think now

is forced to leave the company but upon

his failure he will build the mightiest

company in the world Black Rock

[Music]

another too big to fail asset manager

which handles over7 trillion in direct

management and another 20 trillion

through their proprietary

software I mean Larry f with those

numbers you can say whatever he wants

Black Rock was fantastic

[Music]

California is on the rise to become the

most populated state in

America like the rest of the country

the' 60s was a turbulent time for

California a decade of a drastic

political

change it was such an exciting headyy

time to find out that under the official

reality there was this seething turmoil

of young people learning new music new

thoughts new ideas new literature new

poetry new ways of being Larry Frink is

one of those young people he enrolls in

UCLA to pursue a political science

degree hoping one day to make impact as

a

politician after getting an MBA degree

from USA think takes a job at a leading

Investment Bank versus Boston as a bond

Trader it was a perfect time to get into

the bond business in the early '70s

bonds only began to be actively traded

Larry fing excels at this job he rapidly

Rises through the ranks becoming the

youngest manager at his Department

started first boss in

1976 I was the first Freddy Mac Bond

Trader and so the mortgage Market was

just if it's an infancy and then in

1982 we had the ability to put a PC on

our trading desk before that you had no

ability to put a computer on a trading

desk and it was very clear to me that if

we could have computing power on the

trading desk we were going to have the

ability to dissect cash flows of

mortgages and we were the most

profitable component of first Boston in

83 and 84 and '

85 by 1983 the American economy had

rebound from a DEC long recession the

highest order of business before the

nation is to restore our economic

Prosperity after taking over the

president Reagan work to boost the

economy he starts cutting taxes and

deregulating Wall Street creating a

perfect environment for financial

Innovations one of such is the mortgage

back Securities simply put they bundled

millions of mortgages and turned them

into Securities that can be traded by

any investor Larry was one of the

Architects behind this financial

Innovation which 20 years later morphed

into economic bomb but in the meantime

Larry sells these newly minted security

to large investors like Pension funds

and endowments generating tens of

millions of fees for first Boston at the

time first Boston was at the top of the

investment banking industry specializing

in mergers and

Acquisitions after creating $1 billion

profit for the firm Larry fing becomes

the most profitable man at first

Boston when you're at that level and

you've had all of that success and you

have all of this money

there's a mindset that you're almost

Invincible but then he loses $100

million in just one quarter of

1986 so you could work a lifetime

creating wealth under certain

assumptions that something can't happen

and then bang you're everything you've

lost everything for your whole lifetime

because you thought it couldn't

happen that is a year before the

infamous Black Monday crash and the

market was still in a euphoric state

because everyone was making money unless

you're hedged for events like Black

Monday whatever Alpha you you you think

you're going to get you're not going to

get it when you started having those

types of successes The Firm gave you

more Capital we were taking bigger and

bigger risks without the intended Risk

Technology to navigate that risk uh and

in the second quarter 1986 we lost $100

million on Wall Street one big loser can

raas all your winners the same is true

for reputation although he wasn't fired

but he was sidelined all of a sudden

people don't want to be seen with him

anymore he becomes the Untouchable the

message is clear it is time to quit the

trouble is with tarnished reputation no

Investment Bank will want to hire

him at age 36 Larry thinkink is

unemployed I said to myself 30 days

after we lost money in that quarter even

though we had we made 130 the first

quarter and lost a 100 of it in the

second quarter I said I'm leaving but it

took me a year and a half because I

never ever thought I was going to leave

but it took me a year and a half to try

to determine what I wanted to do next

always a competitive man think refuses

to surrender and is determined to regain

his past Glory by any means

necessary this time he will start his

own business and to do that he will need

investors but with his reputation it is

nearly impossible to raise money

until he meets the legendary Steve

[Music]

schwarzman Steve schwarzman the founder

of Blackstone is one of the most

powerful figures on Wall Street in his

30 years Reign he turned Blackstone into

the biggest private Equity company in

the world but by 1988 Blackstone was

still a lesser known consulting firm and

like think Steve schwarzman was a Cast

Away

he was a rising star in Leman Brothers

on his way to become the CEO but due to

a nasty power struggle he was forced to

leave the

company I I saw a lot of Behavior Uh

that I didn't like and so decided to go

out and do something uh with my partner

who' been thrown out the year before by

the management that went in and

ultimately blew up the company

in 1988 Blackstone just started as a

private Equity business and barely

completed its first deal but Steve

schwarzman is already thinking big by

expanding the company to more areas and

he's considering a wealth management

business one of the reason why

schwarzman was so successful is that he

has an eye for talent he knows how to

hire the best people we wanted to

attract somebody to run it who was a 10

on a scale of 10 because you'll find in

your careers

if you're a 10 God bless you you'll be

wildly successful if you attract

tens they always make it rain if you

need rain um and they just have an

ability to sense problems design

Solutions do new things and that's what

a 10 does and Larry thinkink is a

10 after meeting think schwarzman

decided to start a joy Adventure called

Blackstone financial management by

investing $5 million with fank took me a

year and a half to assemble my thoughts

and and and I told it I told the story

to Steve schwarzman and Pete Peterson

and uh they loved it and they they had

more confidence in me than I had myself

they wanted to go right ahead and we did

that and it all you know we started

making we actually started making money

with within two weeks we talk about

Investment Company and a fund it's easy

to get confused in this case Steve

schwarzman gave $5 million to start a

management company but then they have to

raise money for their

fund within 5 years think built his fund

to have 8 billion under

management think has learned a lesson

that one should always be risk conscious

one of his investment principles is that

he would not put down a dime until the

risk can be understood and calculated

there were so many other companies that

really didn't understand the risk and

most importantly the buy side the

investors had no idea the risk they were

taking and there was a great need for a

company that starts off uh with a high

concentration in Risk analytics and in

principally in the fixed income area

there was a lot of analytics and

equities back then but nothing in in in

bonds he was one of the first in the

industry to rely heavily on statistics

and algorithms to make investment

decisions f is now back on the top he

recognizes that in order to grow bigger

his company needs to offer more stock

options to attract talented people he

demands schwarzman to give up some of

blackstone's ownership to his a great

disappointment St schwarzman rejected

his

plan both Steve schwarzman and Larry

Frink are highly competitive type A

people but Steve schwarzman is a

investment banker while think is more of

a traitor Steve schwarzman he's

unusually conservative of actually

unusually risk averse for a successful

entrepreneur and investor this was a

visceral thing like a primal impulse not

to lose

money two Alphas are always doomed to

clash from the

get-go after being rejected by St

schwarzman for his proposal think is

determined to completely seever ties

with a firm by finding a buyer to

purchase blackstone's ownership as

schwarzman is going through a divorce in

his personal life the news that F wants

to lead Blackstone sent him into a

frenzy ego is a great thing in business

an ego you show me a Titan of industry

and I'll show you somebody with a big

ego but on Wall Street everything has a

price including

ego convenient way to borrow is now even

better because the rate on a PNC Bank

home equity line of

credit just took a tumble

PNC Bank stands for Pittsburgh National

Corporation a finance group with a long

history and lineage in 1991 PNC was on a

buying spree acquiring dozens of smaller

firms it is a perfect buyer for f to get

rid of blackstone's

control they offer hundreds of millions

of dollars to buy out Blackstone steak

think about this Steve schwarzman and F

started this business with just about $5

million that is a huge return in just 5

years although Steve schwarzman is still

hesitant the money it just too good to

ignore he agrees to sell the asset

management business to PNC this is the

biggest mistake in Schwan's career at

the time even he couldn't foresee that

the side business of Blackstone will

someday become a financial giant that

dwarves even Blackstone

itself 1994 was a fateful year for Black

Rock after separating from Blackstone

theany company was still small by Wall

Street standard $8 billion a fixed

income portfolio is not considered to be

big because bonds tend to make less

returns and a little bit less risky now

free to build Black Rock any way he

likes think is holding nothing back but

to win he must find an edge that others

don't have and it will come from an

unexpected Place remember our old

kitchen yeah

SM under the leadership by of Jack welge

GE started an explosive growth fielded

by easy money in the mid 80s General

Electric Venture into new Industries

including news and finance the company

bought ker Peabody a one's respected

Investment Bank but was later found

guilty of insider trading and accounting

fraud once Welsh realizes how deeply in

trouble his new firm is he decides to

sell it to virtually anyone willing to

buy pine Weber another investment bank

is willing to acquire PE body from J but

not its toxic bomb portfolio which

consists of $10 billion worth of CMOS a

type of mortgage Securities these

derivatives are notorious for their

complexity Welch was a brilliant manager

but he was no Finance expert he

frantically tried to get rid of the

toxic assets left by Peabody but due to

the complexity of the portfolio no Wall

Street firm wants to touch it except

Black Rock

as the pioneer of CMOS F realizes if

Black Rock can help GE properly evaluate

the assets he is set to make a huge

profit and it will also be a breakout

moment Fin's team of quantitative

analysts Works tirelessly for weeks to

re-evaluate the portfolio and to

repackage them into a new set of

derivative

assets Black Rock helped GE gradually

unload the assets and recover their

value with minimal loss if you're

confused about what he did and how he

did it you're not alone it's called

Financial engineering it's about

packaging restructuring existing

Securities into new ones while some of

these Securities are indeed valuable

they're only available to Big players in

finance but in the early 1990s the

financial engineering becomes Larry

Fin's number one Competitive

Edge from then on black rocks developed

a reputation as a Ghostbuster for

companies with a problematic assets

Larry fing becomes the guy to call the

success with G solidifies black Rock's

reputation on Wall Street just 3 years

after separating from Blackstone black

Rock's asset under management grew to

$46 billion its parent company PNC

decided to merge its wealth management

division with black rock with a combined

$154 billion total asset

assets after becoming a billionaire

Larry think does what all billionaires

do collecting Arts he believes that arts

and real estates are the two greatest

stores of wealth in the world and

investors with a greater than 100K

portfolio should use Arts as a better

inflation hedge than gold art has

benefited immensely from soaring costs

according to data from City in fact they

reported that Contemporary Art prices

appreciated by

23.2% versus 3.8% for the S&P 500 during

periods of 3% inflation or higher like

right now but unless you have $100

million in the bank you could never take

a proper stake in this asset class until

now masterworks.io acquires

multi-million dollar paintings by famous

artists like basat and Banky and allows

anyone to invest in them just like

picking stocks online and they built an

Innovative platform that they recently

raised $110 million in series a funding

at a valuation over $1

billion the securitize each painting

file with the secc and issue sheares

representing an investment in R piece on

their platform that investors can either

hold or until Mass Works sell the

painting or sell to other Mass Works

members on their

platform investor already saw a 32%

annualized price appreciation from the

sale of their banking painting meta fees

now thanks to Masterworks I'm an

investor in basad and I invite you to do

the same through the link in the

description you will skip the weight

list and get Priority Access to invest

like me and

Larry by the time it went public in 1999

Black Rob became the fifth largest

publicly traded asset manager in

America be wants to be number

one over the next 5 years Black Rock

continues to grow accumulating $400

billion

Assets in a little over 10 years thinks

Black Rock has grown to be a monster and

this monster only wants one

thing to get

bigger in the mid90s the United States

saw a strong economic recovery like

never before during Clinton's second

term unemployment fail the stock market

surged and America once again became the

epicenter of the technological

Revolution rised during the turbulent

60s and economic recession think joined

Wall Street after creating his job at

first Boston think Started Black Rock a

decade later Black Rock became the most

formidable Forest on Wall Street with

hundreds of billions of dollars under

management but underneath of prosperity

a crisis is brewing the financial

derivatives that F helped develop in the

80s have now transformed into a ticking

time bomb in December 2000 Congress

passed the commodity Futures

modernization Act act it banned any

regulation of

derivatives investment Banks make

billions through the business of

securitization this business links

investment Banks insurance companies and

rating agencies together connecting

trillions of dollars in mortgages and

other loans with investors all over the

world the essence of it all is about

shifting risks or rather socializing

risks and privatizing profits

but the risk is still there since anyone

could get a mortgage real estate prices

skyrocketed real estate is real they can

see their asset they can live in their

asset they can rent out their

[Music]

asset there's gripped markets overnight

with Asian stocks St fell off a cliff

the largest single point drop in history

share prices continued to

Tumble in a matter of days one of the

pillars of w one of the first Banks to

fail is be Stern the US government asks

the biggest Commercial Bank JP Morgan

Chase to bail out bear Stern we we

bought ba Bear Sterns and it wasn't

bailed out by the government the

government did a little bit of financing

we only did it because we asked to by

Hank Paulson and we thought if it went

down that could be a huge crisis for the

globe Jamie Diamond is the shest banker

on Wall Street he's not going to acquire

beern at a loss so he dials up like

Larry Frink for

advice incidentally Tim gner who was

orchestrating the deal was already

contacting Larry Frink about bear Stern

in normal times this is a conflict of

interest but F was just too good at his

job so everyone just ignored it then

black rock is hired again to help rescue

AIG practically behind every major deal

due in 2008 Black Rock was part of it

and as an expert on Mor mortgage back

Securities he was called in to help and

to clean up with people like Hank

Paulson and Jamie Diamond and Tim gner

on speed dial Larry think helped

engineer a remarkable rescue for the

financial industry the financial crisis

provided the perfect opportunity for

think to strengthen his position as the

new king of Wall

[Music]

Street after the housing crisis of 2008

issuing and treading fixed income

derivatives are no longer the most

desirable business to get

into since the early 2000 the internet

has become widely available enabling the

growth of social networks like Facebook

and

YouTube now we're at 100,000 people so

who knows where we're going next um

we're hoping to have many more

universities by the Fall social media

enables virtually frictionless mass

communication and a fast flow of

information think realizes this change

will fund Mally alter the finance sector

from the wreckage of the 08 Disaster One

business would explode the ETFs the best

single thing you could have done was

just buy an index fund statistically

this is the simplest way to build wealth

for probably 99% of

investors the markets will grow over the

long term and so because of that we can

invest into some of these different

funds that are available to US every

year it turns out that probably 2third

of the active managers are outperformed

by the index and the third that

outperform in one year are not the same

as the ones who do it the next year in

his classic book Ren and walk down Wall

Street Burton Mill proposes that a

market is essentially random and

therefore unbeatable the only rational

thing to do is putting money in

everything influenced by moil mutual

fund Legend John ble launched the first

public index mutual fund in

1975 starting with just $1 million this

fund tracked the movement of S&P

500 after that many follow suit but

these mutual funds did not become

publicly traded until

1993 when the first ETF spdr came to

life in the aftermath of the housing

crisis in 2009 Black Rock has already

begun acquiring ETFs starting with the

iar from Burton sparlay Bank through

just three funds you can get exposure to

1,500 stocks with minimal fees just like

the fishing industry very few people get

Wealthy by hunting whales most of the

revenue comes from smaller fish with

large volumes I guess to F he realized

that the future of investing is about

tapping into the pockets of smaller

investors volume over profits black rum

controls nearly half of the ETFs in

America in 20 4 alone Black Rock raised

$103 billion shortly The Firm becomes

the major shareholder in almost every

public company out there they have 50

billion in locked Martin and northr

Grumman each has and it's been the most

successful it's not a bank it's just an

investment company and it's been the

most successful in the world so it's

it's huge it's massive Larry f now has

more potential power to influence the US

economy than anyone else he is the GP

Morgan of the 21st century and we're the

largest pension manager in Japan in

Mexico where we are now becoming we just

did an acquisition we're going to be the

largest asset manager in Mexico we have

one technology pipe worldwide that

connects everything we do at the firm

used to remain passive F now has become

more involved in every company's board

so over the last 5 years we built up our

our corporate stewardship team and I

actually believe there's less

accountability at boards than there

should have been in in global companies

and so what we've now been asking

companies please describe your long-term

plan you tell us what longterm is but

most importantly please just tell us

that you reviewed your long-term

strategy with your board it means it

start exercising his immense

power provided by the old the ETFs he

controls e

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