BX - Blackstone Is Unlikely To Outperform Over The Next Decade
2024-06-18 06:39:47 ET
Summary
- Blackstone is a leading alternative asset manager with over a trillion dollars in AUM and a history of strong returns.
- Recent performance and AUM growth suggest that Blackstone's valuation may be too high for significant future outperformance.
- Private credit and insurance segments show promise, but real estate performance may continue to drag down overall earnings.
Dear readers,
Blackstone ( BX ) is arguably the most well-known alternative asset manager and the first one to be included in the S&P 500 ( SPX ) index. The firm has over a trillion dollars in assets under management ("AUM") and has delivered outstanding returns for investors over the past 20 years, matching the over 250% return of the S&P 500. Over a shorter period of time (e.g. 10 years), the stock has outperformed, mainly due to a massive 2021 rally, which has led to a lot of optimism among investors. I have, however, come to a conclusion that it is unlikely that such outperformance will repeat over the next 10 years....
Blackstone Is Unlikely To Outperform Over The Next Decade