Every year, I attend at least one major hedge fund or asset manager conference.
It's a small perk of working in institutional finance and equity intelligence for a decade.
Every conference is parade of wealth and luxury, to say the least. Central bankers, Wall Street CEOs, and political players are there to mingle and enjoy the lavish amenities.
It's a celebration of what we like to call the "Smart Money."
But the reality is it's more of the wealthy's celebration of themselves than anything else.
At least one Hollywood star will be there to give a paid speech and attract some media attention.
A washed up rock band from the 1980s will amp up the nostalgia as attendees relive their glory days.
And there are at least five fondue fountains for some ungodly reason.
I'm not there for any of that...
I'm not even interested in hearing which stocks money managers are buying.
I'm more interested in how these managers are making money off their clients.
Every money manager in attendance is peddling some recycled money strategy (yet pretending it's a whole new idea) to investors in the audience.
They promise low fees and transparency.
They claim they can multiply returns with leverage.
They'll even promise to beat the market by shorting stocks during a downturn.
I've heard it all before...
What they're actually selling is a way to lock up your capital for seven years, pay you average returns, and compensate themselves handsomely with your money.
It's "rinse and repeat." Every year.
I learned my lesson, so I only attend a conference if one speaker is on the schedule: BlackRock Inc. (NYSE: BLK) CEO Larry Fink.
BlackRock is a world-class money manager and owns a lot of great stocks. But what it's really good at, what I'm interested in, is generating fees for itself.
BlackRock does it better than most hedge funds do, and what I learned could be worth a lot of money to you...
Where Will the Market Go Next?
If I want a clue into where the markets are heading, BlackRock is a pretty good barometer of events on the horizon.
The company is the single largest money manager on earth, and it didn't get there by being wrong about the direction of global trends.
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Those three stocks are the firm's top three holdings.
But if you're like me, you want even more than that. You want the extra cherry on top.
You want to pay attention to more than just the $6 trillion in assets BLK manages and the stocks it owns.
You want to tap into the other ways that it makes money...
BlackRock produces a massive amount of money because it continues to tap into the stock market's unquenchable thirst for new products.
Right now, the market is craving passive investment products.
And BlackRock is delivering them. The company's iShares products dominate the market for index exchange-traded funds (ETFs). It has the most assets under management of any ETF provider in the world.
Look, index funds are a lousy way to lose your money. Money Morning Special Situation Strategist calls these investments "snake oil" for a reason.
ETFs and indexing offer the same benefits to your retirement as smoking a pack a day does to your health.
But if investors are clamoring for them, BlackRock is more than happy to collect their money.
And they're rolling out even more of them because they market isn't even close to tapped out.
Fink says, "Index and ETFs still only represent 10% of the entire equity market global capitalization... And I believe this is just the beginning."
While I'm not going to own an ETF anytime soon, I'll happily follow BlackRock's lead and profit from everyone who does.
But here's the best part...
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You don't need to fly out to any fancy investment conferences and watch the wealthy congratulate themselves to get rich the same way they do.
You can just buy stock in a company like BlackRock instead.
The company continually blows the doors off Wall Street with its stellar earnings reports, it pays a stellar 2.65% dividend yield, and analysts expect a share price gain of nearly 30% over the coming year.
It's simply one of the best stocks to buy and instantaneously gives you access to not only the best stocks on the market, but one of the biggest profit centers on Wall Street: fee collections.
Time to Maximize Your Wealth
Do you want to know how the "smart money" investors get rich and stay rich?
They do so by using wealth tactics that maximize their investment income potential and ensure decades of wealth that can span generations. And these secrets have been locked up since the end of World War II.
Well, Money Morning Special Situations Strategist Tim Melvin has broken these secrets out of the vault of the "smart money" managers. And he's sharing the Max Wealth secrets for free right here.
You Could Grow Incredibly Wealthy Using This Secret: This method only focuses on stocks that have a strong potential to skyrocket. When a stock rises past a certain threshold (ideally over 100%)... you collect the money, then roll it into a new position over and over again. It's that simple - and it could make you millions. Learn more here...
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.