YouSaid · the spoken record

Mark Wiedman

lines on the record: 71
first: 2024-03-14
most recent: 2024-03-14
sittings or episodes: 1
sources: podcast

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“Investing in public markets involves two separate mental moves. The first is thinking about where ultimate long-term value is going to be created. And then second, thinking about who's going to pay for it tomorrow. And those are very different things. The first is really a private investment question. The second is what makes great public investors great. understanding that distinction, I think, actually is We talk often in investments as if actually it's just the first one, but the truth is that second one is actually what drives a lot of portfolio returns when you get in and out of a security. Understanding that from the beginning, I think that would have been helpful to understand better.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“Be curious about the world, read the economist, learn about something bigger than the microtechnical thing you're being asked to do. Long term that pays off and having a broader mind because fundamentally fans is nothing other than thinking about the future and the cash flows in the future”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, my favorite business book of all time is a book called My Years with General Motors by Alfred Sloan. He's the man who actually really built the modern general motors and actually really the modern global company. I'd recommend reading that for anybody interested in business. I meant reading Dune. I have to say pride and prejudice. One of my favorites. Reread it during the pandemic. Always great. That Mr. Darcy”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“My biggest mentors were Peter Fisher, who was my boss of the U.S. Treasury, Sue Wagner is one of the founders of BlackRock. And Larry Fink has actually played a pretty big role in kicking me around and growing me.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“So I am listening to Dune, the 1960s novel by Frank Herbert, because it's still one of my favorite books. And Dune Emperor is coming out in just a couple weeks.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“Lot of people encourage eating less beef. Frankly, I find that hard. Love beef, but that is one piece. What we're finding is there are ways of capturing the methane emissions from cows, for example, and actually using those methane emissions to actually create energy elsewhere. So we've invested, for example, in a company that picks up cow chips, very Long Island, we didn't have cow chips, but that means cow dung. And you actually figure out how do you actually take that cow dung, pick it up basically a nuisance for the farmer, turn it into biomethane, and then ultimately you can use that methane that otherwise just simply would have emitted, you burn it to create electricity, to create heat. That is an example of the ways that we can decarbonize agriculture. But you're absolutely right. Agriculture is the trickiest part of the global economy to decarbonize.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“Very super astute question. Agriculture is the most underappreciated aspect of where we as a society emit lots and lots of carbon and methane. So the question is how do you decarbonize agriculture, massively fragmented by definition fields for pasture are using up land that otherwise would be for trees or other carbon stores?”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“Electricity coming in, converted into heat, stored away as a heat sink, and then releases the heat as needed directly into industrial processes. We just invested in a small company that actually builds these batteries. If somebody can figure out how to do that at scale, perhaps this company, it'll actually transform a whole bunch of industrial processes that today have no alternative to using hydrocarbons. And one of the advantages, especially for non-Americans, because America has a lot of oil and gas, if you're a European or a Japanese, if you can find ways of actually reducing your dependence on imported oil and gas, you increase your national security. So these are all coming together as forces that are decarbonizing the economy, and investors can actually make a lot of money along the way.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“Outside of Sydney, we're working with clients who want to invest in startup companies, growth equity companies, to build something like a heat battery. I don't even know this existed. A heat battery is for industrial...”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“Europe is trending in that same way. US actually charges lower gas taxes. And so actually it's slower here, but it's still growing. So what you're seeing are all these steps that are actually moving. Hydrocarbon intensive activities. In other words, things that burn or use oil and gas, and actually shifting things to something that is electrified and lower carbon. So that transformation consumes a lot of capital. Investors around the world want to participate, but it means building pipelines. It means building deepening the electric grid, putting up battery storage. We actually built the largest battery in the world as in Australia. It's a grid stabilizer.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“We're seeing that coal plants are coming out of production very rapidly here in the United States a little bit less quickly in Europe. We're seeing them being replaced by a mixture of natural gas, which is lower carbon emitting, and batteries with wind and solar. And this combination is actually just simply cheaper than operating a coal plant. That's why coal plants, which are very, very carbon intensive, are disappearing. We're seeing in transport, cars that As EVs get more and more efficient that they actually and the cost of batteries drop step by step, we're seeing, for example, that in China today, more than 25%, almost a third of all cars sold last year were actually EVs.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“Pretty simple, Barry. If you look back at the energy system, what we're seeing is because of the simple efficiency of renewables in batteries, just the simple efficiency, not doing God's work, just simply efficiency lowest cost production.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“Chain of intermediaries. Instead, they're actually paying almost nothing directly to transfer the funds back to their parents, their families, whatever. I actually think that the payments efficiency, that's a step forward in human liberation.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“Ultimately, it is a replacement for what otherwise probably would have been a bond. So insurance companies buy a lot of this. And why is this happening? It's because these loans are coming off of bank balance sheets and they're coming into this private credit strategies. This is going to be the big driver of the next five years of how the banks shrink and the capital markets grow, private credit. I think payments is something big. It's not where we directly participate as a firm, but payments, I think, is the place where you have massive revolution. And you already mentioned the possibility of inter-country transfers. That's a place that is massively inefficient. If you think about all of those immigrant workers, legal immigrant workers who are actually remitting funds back to their home countries, many of them are getting scalped on the way out. Imagine a world where instead of paying 7, 8% to some”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“One of the things that regulators did after the financial crisis is say, yeah, we're not letting that happen again. And actually, I give them big credit. Most big banks hold lots of capital. That's where despite an energy shock, a war in Europe, and a huge rate shock, the biggest in 40 years, actually no major bank failed of that. We had a few smaller banks that were underregulated in the United States. But the large global banks, which caused such a mass spec in 2007 and 2008, actually came through fine. The problem is the credit that they create is gradually having to move somewhere else. It's moving into the capital markets. And one of the winners in that is what I would call private credit, simply instead of actually in bond form, we're talking about a pension plan and insurance company or an individual investor, a wealthy individual investor, who's invested into a so-called private credit strategy, which simply means lending money out to some ultimate user, usually a company, and that money...”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“Couple of big forces, one of which is the relentless growth of the capital markets relative to banks over time. This is largely different by regulation. Basel III, an arcane term, but it just means that banks have to hold more capital.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“But for investors looking at the companies, the robotics companies that will serve the elderly Japanese of the twenty fifties, my peers, I hopefully of that age, who are those companies? How will they make money? I think that's a really interesting trend. The second, healthcare, healthcare for all these folks. And then also which societies figure out how to either attract through immigrants or through automation are able to elevate their productivity and which ones can't will actually help distinguish countries that actually have economic growth versus those that shrink.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“That's why I think robotics is driven by demographic change. It's actually one of the most attractive places for long-term investment. Because one thing we know is demographics is destiny. If you have fewer babies today, you're going to have fewer workers tomorrow. This is a huge force. We have to look at it as relative among nations. There are some countries that still have demographic growth. India is the most prominent among them. Africa put in a different sub-Saharan Africa is in a different category because there's still continued population growth that's well above replacement rate. The problem is there isn't actually any feasible path for economic growth to match that. That's a problem for the future.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“So we're living in a world with these demographics are changing the long-term destiny of nations where having enough kids is actually like a long-term question of productivity, of staffing. Now, it's not all bad. If you look at GDP per capita, not just GDP, you'd see that actually the Japanese have done just fine for the last 10 or 15 years. But it does mean that you've got to look to a future where not only will there be fewer kids per adult, but also where robots are going to have to pick up some of the work.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“By the end of this century, we may live in a world where there are, let's say, 600 million Chinese. Do I think there'll be 600 million Americans in 2100? Probably”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“So, everywhere that is rich, women want to have fewer kids. Even in the United States, if you take out immigration barrier, we actually have a declining population. And in countries that don't have immigration or have much lower levels of immigration, Japan being most extreme or South Korea or China, you're seeing birth rates plummet. Baby per woman and replacement rate is more like 2.2. So we're going to see a future where China in the end of the century will probably have, I'm going to guess, fewer people than the United States because the US population will continue. Wait.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“And so, what we're seeing is very little bid for, for example, Chinese equities from either inside of China or globally. However, at some point, the falling knife hits the floor. And the question is, when do you buy? Great question. I'd keep an eye as a global investor on that question, because at some point, China does actually become an attractive buy.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“So by definition you never know when the bottom is. What I say is, and perhaps this is a buy signal, when I talk to global investors, sophisticated investors with major investments in China, they're scaling back. They're not scaling up. When I talk to our own teams in China, the general mood there is pretty dark, and Again, it's mostly dark for domestic reasons. Property crisis, the wealth effect of declining property prices on consumption, consumer sentiment is terrible. And you see increasing concerns for young people getting jobs. These are actual things that dampen people's investment appetite, and they tend to actually go to cash or bank deposits.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“Seeing Mexico, Vietnam, Indonesia. We're seeing India. All of these countries are trying to figure out how do they capture some of that mantle. I think as US investors, looking at Mexico's particularly appealing, it's nearby, It is relatively politically stable. They have privileged access to the US markets and lower cost of production for stuff that would otherwise have been done in China. And we're seeing lots of clients want to invest into Mexico to actually participate, whether in infrastructure or manufacturing. We're seeing companies wanting to move investments there because it's close to the great American market, but it's not China.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“Bell at the ball. First was the United States. Today, global investors, they have no bid for China. Why? Mostly domestic issues in China, but also US Chinese trade tensions, technology conflict. These are reasons where global investors are saying, hmm, perhaps I don't want to invest in China. They weren't thinking about political risk five, six years ago, seven years ago. Now it's front and center. Not quite as big as interest rates, but almost there. And so the question is, how can you actually invest to make money from this? We're seeing clients around the world interested in investing in infrastructure and the winner countries. Who are the winner countries from China's ultimately losing some of its almost monopoly status on manufacturing?”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“So for global investors, the big question is, how do you build a global portfolio in a world that is fragmenting? Five, seven years ago, even as recent as that, you built a global portfolio and you could be an individual financial advisor, an individual investor, or a giant sovereign wealth fund. You built a global portfolio diversifying, looking for opportunities everywhere, and you didn't think much about political risk. Today a global portfolio has to put political risk at the center of his or her portfolio. You've got to be thinking, is this market actually too risky for the current price because of geopolitical events, whether it be war, we all live through a pandemic? These are forces that have rent at the globe fabric of global trade and of global investments. So five years ago, China. China was the second hottest.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“The tough part here, you can be really right about the long-term trend, but if you get in at the wrong time, too early or too late, you can miss it. That's the tricky part in what we do. It's also what makes it fun.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“You don't know which company, and you don't know when to buy. The railroad was obviously a transformational technology. Clearly, I don't think anybody really disputed that. The question is, how do you make money from it? That's not so obvious. Going back to the dot-com boom, the internet was a transformational technology. But many of the companies that sprouted back then were complete failures. On the other hand, there was one small company called Amazon that did actually manage to get out of just book selling into something slightly larger.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“But we've also saw with the railroads in the 40s, 50s, 60s, 70s, that as they started to transform continental economies, a lot of money was lost as investors got very excited. So it's a real economic transformation. What are the right investments? That's a much trickier question.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“Time's going to tell. I don't think it's all nonsense. Importantly, we do see the transformation of the economy through AI as a real long-term force. When we saw a huge crypto boom a few years ago, My view was we're in the midst of a bubble. I want to start growing some tulips like the Dutch in the 17th century. This is different. The question is, when do the cash flows start moving for data centers, for processing manufacturing, processor manufacturing? When is they getting applied in real businesses and how they change their own operations? The answer is actually data centers are booming everywhere. People are trying to figure out how to use these chips whose businesses will rise and fall. Will firms like Bloomberg or BlackRock be disrupted by some attacker who uses AI as an attack vector? We don't know. We'll see. So there can be a lot of early enthusiasm, maybe even hype, but I wouldn't call it a bubble. To me, a bubble sounds like you're selling tulips. I don't think that's what's going on here. We're seeing a transformation.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“There's another school which says take the long view that whether it's electricity, the telegraph, the telephone, the airplane, the car, the fax machine, or the internet. It took decades for these technologies to actually really change the real economy and to actually have a real impact on how people work with each other, how they make things, how they trade. We'll see. Big debate. There is a view that actually while exciting, there is a view that investors are overemphasizing some distant fantasies around AI when actually the real applications are going to take a long time for companies to figure out. We don't know.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“Actually, it's already been used for many years actually in our own quantitative strategies. So large language models in investing is nothing new. But how people interact and how we're facilitated by using AI, that is new. We're going to see what the impact is. There's one school that says it's going to completely change the world very quickly. And that's, of course, why stocks like NVIDIA have had a huge run.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“So, artificial intelligence is got to be the single biggest, exciting, zesty thing of the day. We've got an active debate inside our firm on this question. On the one hand, artificial intelligence is a generalized technology that can spread throughout the entire economy quite quickly because of internet access.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“You talk about distractions. I think that much of the investment universe is set up to actually attract, like look at the shiny ball, look at the shiny ball because a lot of long-term investing is actually not that interesting day to day. Putting aside a diversified portfolio and holding and not freaking out. If you do that over the long haul, especially in US equities, has worked out pretty well.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“Sometimes I think of markets like Dory the Fish with a very short-term memory. Dory can't keep much in her head at any one time. Markets are a bit like that. They're very focused on rates right now. Two years ago, no one was talking about rates. Suddenly everyone's talking about rates. That's the nature of markets. I think it's relevant to be thinking about you have to know what's happening in the flow, but a long-term great investor is thinking about the trends that are a little bit below the waterline that actually fundamentally are where the boat is moving, the current is shifting the entire fleet.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“I think the toughest thing for a reader or a listener to media like this is sorting out what is today's hot topic. That tomorrow people won't even be talking about. And where are their underlying seismic shifts that other people haven't paid a lot of attention to?”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“We're talking about things that are changing our worlds day to day, but you might miss it if you just pay attention to today's headlines.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“to actually investing in things like heat pumps and batteries to day. We're talking about debanking, and we're talking about here banks actually getting smaller, their balance sheets getting smaller due to regulation, especially Basel III. And therefore, actually, where does that credit go? And we're talking about artificial intelligence, which we do see as a transformative technology that ultimately will give the rise of new industries. So these are the kind of forces. Where does capital go to work? And then also geopolitical fragmentation. As we see, supply chains moving away from high dependence on China to a minimum having an alternative. And in some cases, actually saying, let's invest much closer, like in Mexico, to a core market like the United States. These are forces that are actually like transforming our world, but they're day-to-day. They're not shocks. They're step by step. So when we talk about megaphone,”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“If you look around anywhere, every newspaper, every bank, they'll give you lots of guidance on stocks up, bonds down, who knows. Maybe this stock up, whatever. The question is for a long-term investor building a portfolio. Where are their underlying economic forces that are shifting where value is created in an economy? Can you keep an eye on that? That doesn't mean you'll make money on it because you have to actually also think it's already priced in. But understanding what are those big drivers, and we came up with a few that are driving the world. Clearly, central bank activity is huge. That's not what we mean. What we mean is something that has a 10, 20-year horizon. So we're talking about the aging of societies all over the world, huge impact on productivity. We're talking about the transition to a low-carbon economy and the huge capital sums that will be involved as we ultimately move a lot of future expenditure on oil and gas.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“He's moved some into ETFs, but a lot into cash, a lot into cash. And so where clients have moved into cash and saying, when do I come back in? Now, ironically, actually, the market was up. S&P was up hugely fueled by the AI boom in the last year. So many clients of ours miss that. The question is, how do you help them? It's the biggest challenge of their wealth manager like yourself faces. How do you help clients?”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“So we've just gone through the biggest rate shock of our professional careers. If you live and work in finance, the first principle, the most important thing is what's the discount rate? What are the cash flows in the future worth today? That's what interest rates are. As that transformation happened in the last couple of years, where the rate shock from central banks as inflation served, that has totally altered clients' portfolios. In 2022, stocks and bonds were both down about 20% globally. Huge drop. What that led to is clients going into almost a shock. And actually for the last couple of years, if you look net global clients, global investors have, at least from what you can see in funds, actually invested negative amounts in equities. Now, somebody obviously bought some, but broadly the broad investor has actually reduced his equity position.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“Because we see this trend of clients investing in infrastructure especially around this transition to a low carbon economy, that's the place where we want to work with clients. I love that stuff. I love figuring out new products, new teams, new things we can do with clients.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“We are slowly decarbonizing our economy in the United States, in Europe, in Japan, actually also in China. And what's happening is that day by day, small investment decisions are moving future hydrocarbon expenditures, in other words, spending on oil and gas in some future state, moving it today in terms of capital investments. And that's where we come in. Clients need us to actually invest capital into the transition, long-dated cash flows that they can get that will pay for 20 years, 30 years for their pension plans. How do we help them invest in the right products, the right investments so they can get that money and meet their own financial objectives? And this transition to a low carbon economy is one of the biggest trends in the whole investment world. It will consume trillions and trillions of capital doing it thoughtfully consciously. It's why we just recently bought a company called GIP. It's a big infrastructure firm. It's our biggest acquisition in 15 years.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“So, the passions I have are the things that make me get up in the morning. Pretty simple. I love seeing clients, I love seeing teams, and I love working on problems that are really pretty interesting. So what do I mean? Clients. I sit down, for example, with the chief investment officer of a big global insurer. I can sit down with a financial advisor. I might be sitting down with somebody running, even actually interesting competitors. A lot of competitors use our products. I learn a lot from talking to them. I actually think the top job of any executive is actually building great leaders behind him or her. And so spending time in meetings, but also individually growing them as leaders, helping them make great decisions. And then the last part is something I'm very interested in is investing in the transition to the low carbon economy. What I mean by that is for various forces, macroeconomic, microeconomic policy, consumer preferences.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“We are only 3% of global asset management. In almost any other comparable industry, like sales and trading and investment banking, for example, the leader there would be fifteen or sixteen percent. We're small, we're a small fish in a very, very big ocean. So how do you get there? You recognize one, you're still small. Two, you've got to figure out the products your clients need in every individual market. And it differs. What clients want to buy in Switzerland is not going to be the same as what they want to buy in Tokyo. And third, you figure out how do you bring the strengths of the firm, our knowledge, the global brand, global economies of scale all together to serve clients. How do you figure that out? And yet make each client feel like she or he is important as an individual financial advisor or a pension plan or a sovereign wealth fund. So that's the trick.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“You start by recognizing how small we are relative to the universe. You talk about $10 trillion. I'd actually think in terms of revenue. Revenue is where you're getting clients' attention.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“So, why? Because it's a brand that clients trust. The pricing was also quite attractive. That's another part of what you have to be thinking about always in every product, but especially in the ETF world. And then last, you have to be thinking, how can you help clients build portfolios? Many financial advisors turn to us to help us figure out how to build their overall portfolios for their clients. We'll work with them on asset allocations. We'll give them what we call model portfolios. It's basically literally a model filled with ETFs, active strategies, Rs and sometimes other people's, all in a mix, and it allows them to actually focus on what they do best, which is working with their clients. So that's another aspect of why clients might work with us, which is we help them actually build their own businesses.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“So it's a great question because clients never buy from you because your firm is big. They buy because your product is good. So it's got to be, each individual product has to be the best that the client can find. Now, part of that is a brand they trust. So we recently launched a Bitcoin ETF. Have raised about six and a half billion dollars more than anyone else.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“It's again, remember most of those portfolios are long term portfolios where clients have basically said, build a portfolio. Individuals can come to us to actually say, build me a laddered muni book.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source
“And the timing of the timing. The timing of the taxes. We do a tremendous amount in bonds in ETFs. We do it in active strategies, which are still very popular. We actually manage huge sums of money for institutions. So there'll be a huge insurance companies that will come to us and say, you know what, we think it might be more efficient for you just to manage our balance sheet for us, the asset side. So we'll take over the entire balance sheet and manage all the bonds, the corporate bonds, the treasuries, the agencies that sit on those books. All that gets managed at a one big central book, and we get maximum efficiency for our clients as we trade because there's really no other beast on the street that's bigger. And so therefore you can get the best possible returns for your clients.”
2024-03-14 · Masters in Business · Mark Wiedman on Managing Money at BlackRock · IDENTIFIED FROM THE TRANSCRIPT · source