An estimation from PwC's '2023 Global Asset and Wealth Management Survey' is that 1 in 6 asset and wealth management companies globally are likely to disappear or be acquired by 2027; this is twice the normal turnover rate. As per my guest post at Dividend Power, I think BlackRock (BLK) is likely to be a beneficiary of this industry consolidation.
The survey of 250 asset managers and 250 institutional investors paints the picture of an industry grappling with a set of challenges:
- digital transformation;
- shifting investor expectations; and
- consolidation.
As a result, 73% of asset managers are considering a strategic consolidation with another asset manager in the coming months to:
- gain access to new segments;
- build market share; and
- mitigate risks.
In my March 9, 2023 post, I disclose a new position in BLK. I subsequently disclose the purchase of additional shares in this May 12 post in conjunction with the purchase of additional Blackstone Inc. (BX) shares.
My last purchase was at ~$635.35 on May 9. The surge in BLK's share price to ~$728 at the time I composed my guest post, however, means BLK is fairly valued versus undervalued.
I intend to periodically acquire additional BLK shares. However, I will selectively add shares when BLK's valuation retraces to the level at which I recently added to my exposure. I am looking for an FY2023 forward adjusted diluted PE level below 19 (19 x $35.21 = ~$670 share price).
I wish you much success on your journey to financial freedom!
Note: Please send any feedback, corrections, or questions to [email protected].
Disclosure: I am long BLK and BX.
Disclaimer: I do not know your circumstances and do not provide individualized advice or recommendations. I encourage you to make investment decisions by conducting your research and due diligence. Consult your financial advisor about your specific situation.
I wrote this article myself and it expresses my own opinions. I do not receive compensation for it and have no business relationship with any company mentioned in this article.
