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BlackRock is one of the world’s leading investment management companies, managing assets worth $8.67 trillion as of Q4 2020. Their investment approach is focused on providing long-term sustainable growth for their clients’ portfolios. Their investment strategies are designed to meet the needs of a wide range of investors, from institutional clients to individual investors.
Investment Strategy 1: Diversification
BlackRock’s investment strategy is built on diversification. They believe that investing in a range of asset classes can help reduce risk and maximize returns over the long term. They suggest investing in a mix of bonds, stocks, and other assets to help achieve diversification.
Investment Strategy 2: Active Management
BlackRock’s approach is to be an active manager, which means that they continually seek out and analyze new investment opportunities to help maximize returns for their clients. They do not just passively follow market trends and indices, instead they seek out investment opportunities by using their extensive research and analytics. BlackRock will then invest in those opportunities that they believe will provide the most benefit to their clients.
Investment Strategy 3: Factor Investing
Factor investing is a strategy that BlackRock employs that focuses on investing in specific factors that have historically provided above-average returns. This is done by selecting companies that exhibit certain characteristics such as high dividends, low volatility or momentum. These factors have been shown to outperform the market, and BlackRock seeks to capitalize on these opportunities to help deliver better returns to their clients.
Conclusion
BlackRock’s investment strategies are based on diversification, active management, and factor investing. While these strategies will not guarantee a return on investment, they have demonstrated a long-term track record of delivering strong returns for clients. Investors seeking to create a well-diversified portfolio that has the potential for strong returns may want to consider these strategies inspired by BlackRock.