Musk calling out BlackRock

[bluefin]

‘The Public Is Being Lied To’: Elon Musk Says BlackRock “Inflicted” ESG on Americans (msn.com)

If you've wondered why certain companies seem to be veering left this shows why. Companies all need capital to run on. Firms like BlackRock are huge lenders and financial folks. What Musk is saying is these corps are being forced left in order to obtain funding thru their ESG analytics, something that Texas is trying to outlaw.
Many of us have investments/advisors and may not know that that's what's happening. And it's not always what an investor is trying to achieve. Most are looking for best returns not ok returns coated in moral social, eco feelings.

[SmithRanchZ]

Years ago, in the old Jungle, I expressed considerable criticism of companies considering issues other than profits/investor returns. For years, boards of companies have been permitted to use these other issues as factors in their decisions.

Consider for example a company which is the sole big employer in a town. Without the company, a bunch of unrelated companies with close their doors, likely rendering the town blighted or a ghost town. Can the board consider the impact upon the town as a reason not to relocate operations to an alternative location? How about how relocation will mean a bunch of current employees will be unemployed? Employees, not shareholders.

Bunch of folks freaked out, call me names, and generally could not accept the concept that the Board's obligation was to the shareholders, not the employees, not the town, not the unrelated local businesses.

This is the other side of that coin. Can investors discriminate using issues other than return on investment in directing their investments? I'd suggest that not socialism. It's capitalism.

A board considering issues like the impact on the town is a reduction in shareholder control. And, while still not socialism, its a limit on traditional capitalism/shareholder rights.

[CSN]

I might be late to the game, but I'm thinking that Blackrock is evil.

[SmithRanchZ]

Elon is wrong to suggest that ESG originated with Blackrock or was forced on anyone by Blackrock. That's stupid. It originated as a result the accumulation of huge dollars in pension, retirement, and investment funds by people interested in ESG. That's who is hiring and utilizing companies like Blackrock as investment managers. Blackrock is the tail, not the dog.

[Boom!]

Where does he say that it originated with BlackRock?

[SmithRanchZ]

He said - inflicted - whatever that means.

Smaller investment managers began using the predecessor to ESG years ago. These funds and managers were wildly popular. So popular, they were closing to new investors because of the huge volume was beyond their capacities.

So, the big boys jumped into the game. Blackrock, Fidelity, etc. All in response to massive investor demand. So, the facts are - Blackrock did not originate it, did not initially popularize it, and have not inflicted anything on anyone.

[Landlocked]

Larry Fink (Blackrock), by virtue of the voting shares in their mutual funds, has a HUGE influence on whatever it is that corporate entities vote on in their annual meetings/proxies.

Do the majority of the individual investors that have money parked in Blackrocks investment vehicles think the same way Larry Fink does?

I highly doubt it. But if you have money invested in Blackkrock investment vehicles…Larry Fink votes for you.

[fishguru00]

I did the oil and gas tax work for a firm that Blackrock had a significant interest. They were easy to work with.

[2Ws]

Blackrock is the debil