BlackRock: A Rock-Solid Stock Pick

BlackRock's heady growth has fueled the stock's terrific performance.

Since going public at $14 in October 1999, BlackRock (symbol BLK) has been a winner. The stock, which closed at $155 on July 9, has delivered an annualized return (including dividends) of 26.3% since its debut. The terrific performance reflects BlackRock's prodigious growth -- assets under management have climbed 34% a year over the past decade.

BlackRock is well diversified. The firm has 46% of its $3.4 trillion in assets in stock or balanced products, 32% in bond funds and 10% in money-market or similar products. This means that BlackRock can hold on to assets better than many when, say, investors get skittish and move their money from stocks into bonds and cash. The firm has customers all around the globe. And its broad mix of actively managed and indexed products should allow the firm to keep up with investor tastes. Thanks to the acquisition of the iShares brand in 2009, BlackRock is now the biggest provider of exchange-traded funds.

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Elizabeth Leary
Contributing Editor, Kiplinger's Personal Finance
Elizabeth Leary (née Ody) first joined Kiplinger in 2006 as a reporter, and has held various positions on staff and as a contributor in the years since. Her writing has also appeared in Barron's, BloombergBusinessweek, The Washington Post and other outlets.