This is a step-by-step stock review to answer the question, is Blackstone Group (BX) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Blackstone Group (BX) stock a good buy?
- Blackstone Group Company History
- MOS
- Meaning
- Moat
- Management
- 4M Score
- Is Blackstone Group (BX) stock a good buy?
1. Blackstone Group Company History
- Founded: Blackstone Group was founded in 1985 by Stephen A. Schwarzman and Peter G. Peterson, originally as a mergers and acquisitions advisory boutique.
- Early Success: The firm quickly expanded into private equity, raising its first private equity fund in 1987, which laid the foundation for its growth into a leading global investment firm.
- Diversification: Throughout the 1990s and 2000s, Blackstone diversified into other areas such as real estate, credit, and hedge fund solutions, becoming a major player in alternative asset management.
- Going Public: In 2007, Blackstone went public, listing on the New York Stock Exchange, marking one of the largest IPOs at the time for a private equity firm.
- Global Expansion: Blackstone expanded its global footprint, establishing offices in major financial centers around the world, and significantly increasing its assets under management.
- Major Acquisitions: Blackstone is known for high-profile acquisitions and investments across various sectors, including real estate, technology, healthcare, and energy.
- Leadership in Alternatives: Today, Blackstone is one of the world’s largest alternative investment firms, with expertise in private equity, real estate, hedge funds, and credit strategies.
- Headquarters: Blackstone Group is headquartered in New York City and continues to influence the global financial landscape through strategic investments and innovative financial solutions.
2. MOS (Margin Of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: On Sale
- Score: 50
- MOS: 80%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Blackstone Group makes money:
- Private Equity Investments: Blackstone Group earns revenue by managing private equity investments, including buying, managing, and selling companies for profit.
- Real Estate Investments: The company makes money from managing and investing in real estate properties, generating income through rents, sales, and property management fees.
- Hedge Fund Solutions: Blackstone earns from its hedge fund solutions, including managing hedge funds and providing investment management services.
- Credit and Debt Investments: Revenue comes from managing credit and debt investments, including loans, bonds, and other fixed-income securities.
- Advisory Fees: Blackstone charges fees for advisory services, including mergers and acquisitions (M&A) advisory, restructuring, and other financial consulting services.
- Management Fees: The company earns management fees from its investment funds and client accounts, based on assets under management.
- Performance Fees: Blackstone generates performance fees, which are a percentage of profits earned from its investments, providing additional revenue based on fund performance.
- GSO Capital Partners
- BioMed Realty
- Hilton Worldwide
- International Market Assessment (IMA)
- AlliedBarton Security Services
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Blackstone Group stacks up against other companies.
- WisdomTree, Inc.(WT) – 89
- Ares Management Corporation.(ARES) – 84
- Sixth Street Specialty Lending, Inc.(TSLX) – 83
- KKR & Co. Inc.(KKR) – 83
- Goldman Sachs BDC, Inc.(GSBD) – 78
- Blackstone Inc.(BX) – 50
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Founding Blackstone: Stephen A. Schwarzman Co-founded Blackstone Group in 1985, establishing it as a major player in the alternative investment industry.
- Expansion to $1 Trillion AUM: Led the firm’s growth to manage over $1 trillion in assets, making Blackstone one of the largest investment firms globally.
- Successful Public Offering: Oversaw Blackstone’s successful IPO in 2007, which was one of the largest IPOs of a private equity firm at the time.
- Diversification and Innovation: Drove the diversification of Blackstone’s investment strategies into private equity, real estate, credit, and hedge funds, enhancing the firm’s market presence and capabilities.
- Major Acquisitions: Spearheaded significant acquisitions, including Hilton Worldwide and BioMed Realty, expanding Blackstone’s portfolio and influence in various sectors.
- Global Expansion: Expanded Blackstone’s global footprint, establishing a strong presence in key international markets and increasing global investment opportunities.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Blackstone Group (BX) is 73/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Blackstone Group (BX) stock a good buy?
Some of the top questions investors can have is Blackstone Group (BX) stock a good buy or should I buy Blackstone Group (BX) stock?
Blackstone Group (BX) is an attractive investment due to its substantial growth and diversified asset management portfolio. The company manages over $1 trillion in assets across private equity, real estate, credit, and hedge funds, providing a broad range of investment opportunities.
Blackstone’s successful acquisitions, such as Hilton Worldwide and BioMed Realty, have strengthened its market position. The firm’s innovative financial solutions and global expansion further enhance its appeal.
However, potential investors should consider risks such as market volatility and the impact of economic conditions on investment returns.
Overall, Blackstone’s strong asset base and diversified investment strategies make it a compelling investment, but careful evaluation of market risks is advised.
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To truly know if Blackstone Group is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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The Summary, Score, and MOS of this stock may have changed since the posting of this review. Please login to Tykr to see up-to-date information.