What a $100 Monthly Investment in BlackRock Could Grow Into Over 20 Years
Key Points
BlackRock is the largest asset manager in the world.
BlackRock has been able to anticipate trends and act on them.
Investing $100 per month in BlackRock stock over 20 years would increase the nest egg by nearly double.
BlackRock (NYSE: BLK) has been opportunistic and exhibited foresight over the past 20 years in building the world's largest investment management company. When BlackRock went public in 1999, it was owned by PNC Financial Services (NYSE: PNC) and was a middling player in the asset management business. That would change with major acquisitions, including the 2006 purchase of Merrill Lynch Investment Management, which immediately raised its profile as a top-10 asset manager.
But the biggest move came in 2009 when BlackRock acquired the world's largest asset manager at the time, Barclays Global Investors, or BGI. This transformed a minor player just a few years earlier into the world's largest money manager. It also brought BlackRock BGI's iShares family of exchange-traded funds (ETFs), which transformed how people invested and propelled BlackRock to the market dominance it has enjoyed since.
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BlackRock anticipated the ETF boom, and now it looks to the next big change in the industry: private markets.
Image source: Getty Images.
Betting on private markets
A few years ago, BlackRock made a big bet on private markets and alternative investments, making several acquisitions to build out its leadership position in these areas.
CEO Larry Fink believes it is a pivotal change for the company. "We see an opportunity to do for the public-private market divide what we did for index vs. active," Fink wrote in his 2025 shareholder letter -- that is, breaking down the separate silos that exist. He eventually sees indexing private markets, just like it does with the S&P 500.
By 2030, Fink expects private markets and technology to account for 30% of its anticipated $35 billion in revenue.
Ultimately, this strategy is designed to sustain BlackRock's market leadership for the next 10 or 20 years as it forges new revenue streams.
The long-term benefits of a $100 per month contribution
Can BlackRock stock match the success it has achieved over the past 20 years?
Since 2006, BlackRock stock has posted an average annualized total return of 13.4%, beating the S&P 500.
Data by YCharts.
If you invested $10,000 in BlackRock stock 20 years ago and subsequently contributed $100 per month to that investment, you would have about $231,500 right now.
Without the $100 contribution per month, you would have about $123,700 -- that's about 46% less. Or, put differently, you would have 87% more by investing $100 per month in BlackRock stock.
So it really shows the importance of investing in the right stock, being patient, and consistently reinvesting in it, no matter what the stock price does at any given time.
It is impossible to know whether BlackRock will match that 13.4% return over the next 20 years, but the company seems to be anticipating the next big trend and investing in it. That should make investors feel pretty confident about BlackRock's future growth prospects.
Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends BlackRock. The Motley Fool has a disclosure policy.