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Hello, everyone! Today, I want to talk about how you can still make a difference, even when it seems like three massive companies are taking over the world. Together, Vanguard, State Street, and BlackRock manage over $22 trillion—more than the GDP of most countries. By 2030, these giants are expected to control 40% of shareholder votes in the S&P 500.
Why Does This Matter?
The influence these firms wield is staggering. With such a significant share of the market, they have the power to push any agenda they want on the companies they invest in. For example, a few years ago, ESG (Environmental, Social, and Governance) suddenly became a top priority for all Fortune 500 companies. Why? Because the "big three" could steer CEOs in whatever direction they desired.
But What About Real Estate?
You might think, “I’m in real estate; this doesn’t affect me.” Think again. Wall Street is rapidly buying up homes in the U.S. Last year, they purchased 1 in 7 homes. According to MetLife Investment Management, institutional investors could control 40% of U.S. single-family rental homes by 2030.
We’ve already seen consolidation in industries like TV, news, food, and accounting. Now, it's spreading to sectors like car washes, dental practices, real estate, and even social media accounts. If you're still not convinced that this massive consolidation is a problem, just look at companies like Disney and Target. Both have pushed political agendas that left many consumers questioning their brand loyalties (click here to see my blog about Disney)! Both companies pushed political agendas! I don’t know about you, but I watch Disney with my kid to enjoy a good-hearted film together, not to discover the popular political agendas.
The Role of Independent Fund Managers
One of the few forces that can slow down or stop this massive consolidation is independent fund managers. Fund managers are the "Wall Street Rebels" because they aren't tied to the agendas of these mega-companies. They operate independently, making decisions that align with their investors' goals rather than following a corporate script.
At Fund Launch, our mission is to help you launch or scale your own investment fund. Even if you decide not to start a fund, understanding how funds work gives you the knowledge to influence markets and push back against this trend of consolidation.
Conclusion
Now you know that there are three companies with a massive influence on the global market, but there’s something you can do about it. By understanding the power of independent funds, you can make a difference in a world increasingly dominated by mega-corporations.
For more insights like this, visit the Fund Launch Blog! And if you’re ready to start or scale your own investment fund, head over to Fund Launch today.
Thanks for reading,
Want to get direct guidance for your fund? Schedule a time with my Fund Advisors!
DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the authors.
