The Myth of Vanguard and BlackRock Controlling 90% of U.S. Companies

Recent discussions and articles have incorrectly suggested that Vanguard Group and BlackRock, the largest asset management firms in the world, collectively own 90% of U.S. companies. However, this notion is a myth. While both firms hold significant stakes in many major corporations, their combined ownership is much lower than that figure.

Actual Ownership Shares

As of 2023, Vanguard and BlackRock together own substantial stakes in many major companies, often ranging from 5% to 10% in the largest corporations. However, the total ownership across all U.S. companies is diluted due to the presence of numerous other institutional investors, mutual funds, and individual shareholders. Estimates suggest that they hold around 15-20% of the total market capitalization of the U.S. stock market, but this varies by sector and individual company.

Contradictory Information

A 2015 article from a reputable source mentioned that BlackRock and Vanguard own some 1,600 U.S. companies with combined sales of $9.1 trillion. Adding State Street, the third-largest owner, their combined ownership includes nearly 90% of all SP 500 companies. However, there is no credible information to suggest they own 90% of all U.S. companies.

Conspiracy Theories and Misconceptions

Several articles and social media posts circulate conspiracy theories suggesting that certain entities, including Vanguard Group and BlackRock, have extensive control over major sectors such as Big Pharma and media. For example, the article 'The same shady people own both Big Pharma and the media' and 'Big Media You’ll never guess' from LifeSite claim that these firms have significant influence. However, these claims lack substantive evidence and are often based on unfounded speculation.

Fact Check and Transparency

Various fact-checking videos and articles have debunked the claim that BlackRock and Vanguard own all the biggest corporations in the world. These sources emphasize the need for transparency and the dilution of ownership across multiple stakeholders in the U.S. market. For instance, a video from 'Fact Check' highlights the missing context in such claims.

Regulatory Concerns

Concerns about the monopoly power of BlackRock have also been raised. A CNN Business article titled 'BlackRock and the 15 trillion fund industry should be broken up' suggests that antimonopoly groups believe the firm has too much control. This highlights the ongoing debate about the concentration of power in the financial and investment management sectors.

Conclusion

The myth of Vanguard and BlackRock owning 90% of U.S. companies is a misperception. While these firms are indeed influential in the asset management industry, their actual ownership is much lower than the exaggerated claims. It is crucial to base our understanding on factual evidence and transparent sources.