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Blackstone Is An Interesting Way To Expose Yourself To Alternative Investments

Apr. 01, 2022 8:11 AM ETBlackstone Inc. (BX)TROW31 Comments
Khen Elazar profile picture
Khen Elazar


  • Blackstone is a leading alternative assets manager.
  • Blackstone has a great track record of success in its investments.
  • Blackstone isn't priced well enough to be a BUY, but it should be on your watchlist.

Piggy Bank,3d Render

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As a dividend growth investor, I am constantly looking for additional dividend growth opportunities, which I still do not own in my diversified portfolio. In a previous article, I analyzed T. Rowe Price Group (

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Khen Elazar profile picture

Analyst’s Disclosure: I/we have a beneficial long position in the shares of TROW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (31)

Can P/E continue to rise with higher interest rates? Why hasn't everyone sold BX if consensus is much higher interest rates?
@DenOrt12 they have. Have you noticed the stock price recently?
@The Cardinal Then why are analysts still issuing price targets $150-$186? They are compensated on their accuracy. If BX is worth $100, why call for PT of $150+?
@DenOrt12 Ah, my friend, that's where you are wrong. Analysts are paid to woo companies for their investment banking business. Why do you think there are so few "sell" recommendations? You don't get how corrupt Wall Street is.
Are the dividends that BX pays qualified dividends?
Why are analysts at Deutsche and Bank of America raising their BX price targets when these firms are two of the most vocal calling for recession?

There must be some reason why they can go higher even with much higher interest rates. What is it??
@DenOrt12 Blackstone has a lot of strategies that will benefit from rising interest rates. They are raising capital at breakneck speeds with new strategies like their private REIT for retail investors. They also manage money in floating rate private loans, etc.

Blackstone should be able to keep going higher if it keeps increasing its fee paying assets under management by 15-20% per year over the long term which it could certainly continue to do even with higher interest rates.

Any weakness in traditional private equity seems more than likely to be fully replaced with the retail products. The possibilities are enormous here as the private REIT continues to scale, they start scaling up private infrastructure REIT for retail investors, etc. I suspect the insane fundraising pace for these newer products has something to do with the analyst targets.
what is a good buy price ?
Blackstone?? Should be called Blackjack the way it's been trading!!

In fact, you'd probably make more playing blackjack!
Very unwise, even for 13 comments... blackjack is, even when played optimally, statistically/probabalistically speaking, a 49.x-50.x game. Take a look at a BX 10 year chart, then consider distributions. Even someone with 13 posts can make a good decision there.
@canyon You're making my point. It's been a 50/50 daily outcome for BX over the last 6 months, putting its payoff on par with a blackjack game. Long term history is irrelevant here. What matters is how it performs going forward. The last rate tightening cycle (2016-2018) saw BX lose ~40% of share value, and that was in a relatively dovish tightening period. Inflation is real now, and a long-term hawkish Fed is an entirely new ballgame for PE. Time will tell if their shift to infrastructure, medical, and logistics properties bears fruit for shareholders.

Do you get wiser with each one of your 6.21K comments??
@DenOrt12 higher rates kill BX
Zucks profile picture
I do not have a penny in BX. After it quadruple in value, I sold my initial investment and just watching the gains!! Neat.
I have owned this since it went public.. so glad a few years ago they got out of issuing a K-1 if you owned the stock. Great dividends, great growth and they are really good at what they do. Long BCRED and long BX!
Nice piece, thank you. These people are some of the smartest in business.
BX has been wonderful for me.
Thanks for your insights. I have BX in all five of the portfolios I oversee and it has done quite well for me.
FRANKLIN32 profile picture
I have owned BX for a few years and find it a good way to diversify my portfolio and also keep track of good management styles in the same process that Black rock conducts.
SA-NJ52 profile picture
BX is my number one stock.

It is part of my Private Equity/Private Credit Portfolio that I call the "Running with the Big Dogs" Portfolio.

Only up 188% bought when LP IN 401k now into ROTH 😊😊😊🇱🇷
@aimepic pay taxes??
> The company's dividend is growing over time, but it pays an
> inconsistent dividend.

Yeah, I hate when my consistent and increasing dividend is screwed up with one-time and/or surprise extra distributions, right?
I must admit that I saw this one coming. When they converted to a corporation and talked about their dividend policy, I expected good things - and got them! Up almost 3x! I'm not that smart, but I'll take lucky!
Given BX's volatility, you'll get a better entry point than 126. I would say anything below 110 is a buy.
pauliedeuce profile picture
@The Cardinal same thought process. Anything under 110 is a buy
@pauliedeuce 5 years from now the difference between 110 and 126 will not likey matter . If itching to buy ,Divide set amount of money want to invest into 4 equal tranches , Buy some now , buy some later when it goes down . If it goes down to 110 invest , If it goes down again to 100 invest some more . Goes down to 90 invest last fourth of money . It cost nothing to trade and dollar cost averaging makes sense since trading stock is cheap .
Monarch00 profile picture
@Dr.Div63 Good to know, since I bought it at $128.75 over a month ago.
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