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Earlier this month, BlackRock Inc. (NYSE: BLK) reported fantastic earnings for the first quarter of 2018, surpassing Wall Street's expectations on nearly every metric.
Now, BlackRock is the largest money manager on the face of the earth, so any sane individual interested in keeping up with the markets - and therefore making money in them - needs to pay close attention to BlackRock's performance.
The company reported net inflows of $55 billion into its money management products. It also hiked the dividend by 15% and bought back $335 million in stocks, both of which contributed to the solid 6% gain shareholders saw from January to March.
Now, BlackRock is far too large for me even to consider owning. I only target unreasonably undervalued companies, and any company known as the world's largest "anything," let alone money manager, will always be far from undervalued.
But when BlackRock is speaking, it's a good idea to listen. The recent earnings show the company now has over $6 trillion in assets, meaning the suit-wearing foot soldiers are pretty damn good at selling their products.
And this most recent earnings report speaks volumes about how these products are falsely marketed to you...
They're marketed as investments that don't provide underwhelming returns when, in reality, that's exactly what they provide...
About the Author
Tim Melvin is an unlikely investment expert by any measure. Raised in the "projects" of Baltimore by a single mother, he never attended college and started out as a door-to-door vacuum salesman. But he knew the real money was in the stock market, so he set sights on investing - and by sheer force of determination, he eventually became a financial advisor to millionaires. Today, after 30 years of managing money for some of the wealthiest people in the world, he draws on his experience to help investors find "unreasonably good" bargain stocks, multiply profits, and build their nest eggs. Tim tirelessly works to find overlooked "hidden gems" in the stock market, drawing on the research of legendary investors like Benjamin Graham, Walter Schloss, and Marty Whitman. He has written and lectured extensively on the markets, with work appearing on Benzinga, Real Money, Daily Speculations, and more. He has published several books in the "Little Book of" Investment Series and a "Junior Chamber Course" geared towards young adults that teaches Graham's principles and techniques to a new generation of investors. Today, he serves as the Special Situations Strategist at Money Morning and the editor of Peak Yield Investor.