Author Topic: BX - The Blackstone Group  (Read 6725 times)

Picasso

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Re: BX - The Blackstone Group
« Reply #10 on: September 15, 2014, 09:08:52 AM »
Trying to determine whether their dividend is stable/consistent. Currently yielding over 5%.

I wouldn't value these stocks on the dividend.  One, they are not consistent.  Two, the dividend is just a piece of the SOTP being returned back to you in the form of a partnership distribution.  The dividend is sort of meaningless in my view since NAV will be reduced by the amount of distributions.


ValueMaven

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Re: BX - The Blackstone Group
« Reply #11 on: October 31, 2019, 12:56:39 PM »
Shocked this has been talked about more....even after the LP to C-Corp news.  Yes, I would buy this here in the cyclical ... but it could be very interesting in a pull-back.  Has returned nearly $20 in dividends alone to shareholders since IPOing

John Hjorth

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Re: BX - The Blackstone Group
« Reply #12 on: October 31, 2019, 03:06:56 PM »
Valuemaven,

I took a look at it - together with BLK - some time ago, before the BX conversion to C-corp. from LP entity, just get a bit of feeling of what's going on in the Asset Management industry. [I own BAM, & to me, those three are all very different beasts compared to each other.] My look at BX was only a bit more than cursory, but I gathered, that it's not possible for me to value BX, because :
  • How do you handicap for the excessive [/prohibitive <-?] executive compensation? [Please see the the BX 2018 10-K, p. 239 ... - It really sucks & stinks to me.]
  • How do we know the size of the pie we may be buying into, when it's to us presented as basically "a half pie" [Please take a look at the diluted unit numbers in the BX 2018 10-K, p. 204], and we actually don't have a clue about the real interaction between the "pictured" two halfs of the pie, the one half we can study via BX, while the "aleged other half" is actually totally in the dark, because of the ownership interests of Blackstone Holdings Limited Partners in the five Blackstone Holding LP's. [Please see group chart in the BX 2018 10-K, p. 85.]
  • It's beyond my comprehension  how you can convert a GP/LP structure to a C-corp. while maintaining the control & power structure. [I haven't tried to find the articles of association/bylaws for the continuing C-corp. though.]
- - - o 0 o - - -

I plan to take a look at BX again, when we have access to the BX 2019 10-K.
”In the race of excellence … there is no finish line.”
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ValueMaven

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Re: BX - The Blackstone Group
« Reply #13 on: October 31, 2019, 04:55:52 PM »
Hi John -

Would love to get your take on why BAM > BX

Sincerely,
VM

John Hjorth

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Re: BX - The Blackstone Group
« Reply #14 on: November 01, 2019, 12:04:27 AM »
ValueMaven,

It would not be prudent by me based on my limited understanding of BX to try to express an opinion of a comparison of BX with BAM. [ : - ) ] Maybe at some point in time later.

Companies in this space are in a Golden Age, and have had incredibly good runs lately. The key question for them as investments by now is actually phrased very well above by jouni now more than 5 years ago, and I think it still applies:

i sort of like OAK more too, i believe there's going to have to be some structural changes in the "alternative" asset management business. the returns just don't seem to be there. it's not sustainable to collect higher fees for lower returns.

and then for the stupid question of the post: why are all of these (newly listed) asset managers LLC's or LP's? they are not taxed on the corporate level right? so i shouldn't be so worried about higher dividend taxes?
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai