Jim Cramer - Mad Money Blackrock Inc. BLK-N DON'T BUY Apr 02, 2025

Up 5.5% this week. The assets that private equity companies like this bought when rates were 0% are pretty amazing. As rates settle lower, expects even more activity. 

BLK is one of the largest asset managers in the world. The company has managed to grow its revenue consistently over the years, driven mainly by organic growth. BLK is a dividend machine with a very stable and consistent track record of raising dividends over the years.

That being said, BLK is trading at 22x Forward P/E - the higher end of its historical multiple, which has ranged from 15.6x to 22x over the last few years. We would not be too aggressive in purchasing here and would be nimble and prefer to add to the position over time as opportunities present themselves. 
Unlock Premium - Try 5i Free

He looks at its long-, not short-term outlook. Fine CEO in Larry Fink. This is a stock to buy on pullbacks.

Track record of stock performance has been excellent. Largest asset manager in the world. Does not see the asset base declining - will only grow. Very strong management team with good capital allocation skills. New products always being added to the mix. 

A fundamental part of his portfolio. The stock is resting. Usually, it has a big move, then rests, big move, rests. Long term, the growth rate is fabulous.

Is down because Vanguard cut its fees. He picked up some shares on today's sell-off.

It's been a dog, doing nothing and trying to crack into infrastructure. Trump wants the Panama Canal back. Blackrock bought it, which could become an amazing return. But shares are still -5.56% this year. Ridiculous.

Great execution, but always on the expensive side. Nothing wrong with the company, but doesn't tick all the boxes for a value manager like himself.

A long-term position for him. He's betting on the CEO who is switching to a more lucrative model. Great technology.