STOCK MARKET: Blackstone CEO Schwarzman Makes $573 Million in One Day as Shares Jump

  

Category:  Stock Market & Investments

Via:  krishna  •  3 years ago  •  21 comments

STOCK MARKET: Blackstone CEO Schwarzman Makes $573 Million in One Day as Shares Jump
Stephen Schwarzman, founder and CEO of the giant U.S. private-equity firm Blackstone, was already one of the world's richest men. ..But after an announcement that the partnership will convert to a stock corporation sparked the biggest one-day rally in its publicly traded units, Schwarzman is immediately $573 million richer on paper.

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Photo credit: Lugen Family Office

A plan by the giant U.S. private-equity firm Blackstone Group (BX - Get Report)  to  convert from a partnership  into a stock corporation sent the company's publicly traded units up by 6.9% on Thursday, the biggest single-day rally in almost two years. 

The plan is designed to allow ownership in the company by a broader swath of investors -- mainly those who don't want the hassle of filing the extra Schedule K-1 tax filing required by the Internal Revenue Service for partnerships.     

But no one benefited more from the price jump than founder and CEO Stephen Schwarzman, 72.

According to the company's annual report for 2018, filed last month with the Securities and Exchange Commission, Schwarzman holds 231.9 million partnership units in Blackstone Holdings, which are exchangeable for the publicly traded units up to four times a year. 

The announcement of the conversion plan sent those units up by $2.47 in New York trading on Thursday - translating to a $573 million paper gain for Schwarzman. 

Based on the latest price of $38.40 for Blackstone's units, Schwarzman's holdings are now worth roughly $8.9 billion, and over the years he's received additional compensation from generous annual pay packages - $69 million in 2018 alone - and distributions to unitholders. So, for Schwarzman, the extra hundreds of millions are just that: a little extra. 

But hey, it's still more than three times the current $175 million jackpot for the 44-state Mega Millions lottery. 

Not bad for a day's work.

Related:

1. Here's Why Blackstone Shares Jumped on Thursday

2. Blackstone’s Stephen Schwarzman on Hiring Phenomenal People

Full disclosure: I own shares of Blackstone (BX)


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Krishna
Professor Principal
1  seeder  Krishna    3 years ago

Based on the latest price of $38.40 for Blackstone's units, Schwarzman's holdings are now worth roughly $8.9 billion, and over the years he's received additional compensation from generous annual pay packages - $69 million in 2018 alone - and distributions to unitholders. So, for Schwarzman, the extra hundreds of millions are just that: a little extra. 

But hey, it's still more than three times the current $175 million jackpot for the 44-state Mega Millions lottery. 

Not bad for a day's work.

 
 
 
Lucifer Morningstar
Professor Guide
1.1  Lucifer Morningstar  replied to  Krishna @1    3 years ago

And I was just happy with the $5K I picked up on today's action.

 
 
 
Lucifer Morningstar
Professor Guide
1.2  Lucifer Morningstar  replied to  Krishna @1    3 years ago

BTW, He attained a greater value than that back in September and the value of his holdings were reduced three times that amount back in December.  It's as if nobody can read a fucking stock chart.

 
 
 
Krishna
Professor Principal
2  seeder  Krishna    3 years ago

I suppose this will make a lot of people hate him!

(Oh well :-):-):-))

 
 
 
Release The Kraken
PhD Principal
2.1  Release The Kraken  replied to  Krishna @2    3 years ago

I just need a few stock tips. I sold Amazon in 2000 and could have retired had I held it for a few more years.

 
 
 
Krishna
Professor Principal
2.1.1  seeder  Krishna  replied to  Release The Kraken @2.1    3 years ago

I just need a few stock tips.

Yes-- but doesn't everyone? :^)

 
 
 
Krishna
Professor Principal
2.1.2  seeder  Krishna  replied to  Krishna @2.1.1    3 years ago
I just need a few stock tips.

Well, one good piece of advice might be to stay out of the Stock market-- its a jungle out there!

But seriously, at this point I'm a fairly serious investor. And from what I've seen, there a problem for most people. And that is that most investment advisors really just aren't all that good. 

I've read advice from the "old timers"-- people who been in the market for years. Most of them give these two bits of advice:

1. Realize you don't know as much as you think you do!

That means be a bit cautious-- don't try to get rich overnight on one stock. If you hear of a stock deal that sounds "too good to be true'-- it probably is! ( A good idea is to put a small set amount of money into the market every month-- or even every quarter).  

2. One thing almost all of these experienced people agree on-- the key is diversification. In plain English that means "don't put all your eggs in one basket".If you think you can't go wrong with Internet stocks because the Internet is"the wave of the future"-- put only a little money into that sector-- but also put some into other areas that seem less glamourous: consumer goods, food, infrastructure, retail, manufacturing, defense, etc, etc.

A lot of people think they can make a lot of money in the market. My own opinion is that a more sensible goal might be to make small fairly consistent gains a year. Since currently interests rates are very low, you can't do very well putting money into an interest paying savings account, moneymarket, bonds, etc. So I buy almost entirely dividend paying stocks and reinvest the dividends. 

                                                                  

 
 
 
XXJefferson51
Senior Guide
2.1.3  XXJefferson51  replied to  Krishna @2.1.1    3 years ago

I recommend Investors Business Daily for investment ideas and advice. 

 
 
 
Krishna
Professor Principal
2.1.4  seeder  Krishna  replied to  XXJefferson51 @2.1.3    3 years ago

I recommend Investors Business Daily for investment ideas and advice. 

Sometimes they have good articles. 

I used to read them daily-- but that was some time ago.

There are different "styles" of investing,and mine is different than the ones they use.

They are more into technicals-- I weigh fundamentals more heavily.

I also try to find sectors where I think the general public perception as well as the "experts" are  wrong (which isn't easy!).

Also they tend to feel a stock has "entered their 'buy zone'" when its moved up to a certain level-- that's often the point where I sell, not buy!

(Today BX had a big move up.I took that as an opportunity to sell some of myholdings and take some profits).

IMO the market is muc hmore difficult to figure lately-- and there's a lot more sector rotation

 
 
 
XDm9mm
Masters Expert
2.2  XDm9mm  replied to  Krishna @2    3 years ago

Probably.  Only because they're not smart enough to be in his position.

Alternatively it's known as jealousy and envy.  That shit will eat you alive.

 
 
 
Sparty On
Professor Principal
2.2.1  Sparty On  replied to  XDm9mm @2.2    3 years ago

Whole lotta eating going on here daily .....

 
 
 
Krishna
Professor Principal
2.2.2  seeder  Krishna  replied to  XDm9mm @2.2    3 years ago

Probably.  Only because they're not smart enough to be in his position.

Sometimes people make lots of money because they're really smart. Sometimes (less often) because they're just lucky. Sometimes its a combination.

In this case the guy is really smart. 

But while I'm nowhere near as smart as he is, I don't hate him for that.

(Of course I'm biased-- he's smart, much smarter than me. But I don't hate him for that. Because while I've done some really stupid things in the stock market, sometimes I get it right. And I've bought a lot of BX stock over the last few years. So Steve Schwartzman has made a lot of money for me!)

 
 
 
Greg Jones
Professor Guide
2.3  Greg Jones  replied to  Krishna @2    3 years ago

Index funds, dollar cost averaging, and reinvesting any dividends

 
 
 
Krishna
Professor Principal
2.3.1  seeder  Krishna  replied to  Greg Jones @2.3    3 years ago
Yeah, probably. Most likely they will be envious have nothings of the liberal persuasion.

Well, true in many cases.

Although there are also some liberals who have been wise enough to save some money -- some invest in the market.- I've known many who don't hate successful people

 
 
 
XXJefferson51
Senior Guide
2.3.2  XXJefferson51  replied to  Greg Jones @2.3    3 years ago

Bingo on all counts. I’ve been a regular investor since 1996 and have eight years to planned retirement though if I’m up to it I’ll keep on working.  

 
 
 
XDm9mm
Masters Expert
2.3.3  XDm9mm  replied to  XXJefferson51 @2.3.2    3 years ago
retirement though if I’m up to it I’ll keep on working.

Retirement ain't all it's cracked up to be. 

I'm currently contemplating going back to work....  at 69 years young.

I'm going through the clearance reinstatement BS right now and MIGHT go back if the offer is good enough.

Strange place...  they recruit someone because of the reputation built over years of working with them, but they can't tell you what you're being recruited for because the clearance isn't current, so they go through the BS of doing investigations and other 'stuff' to get the clearance current to let you know what they want you for.  The absurdity of it is mind numbing.  PLUS if the position isn't something you're interested in, they spent all the time and $$ for nothing!!

 
 
 
Krishna
Professor Principal
2.3.5  seeder  Krishna  replied to  Greg Jones @2.3    3 years ago

Index funds, dollar cost averaging, and reinvesting any dividends

For most people that's definitely the smartest way to invest!

(I don't do index funds because I like spending time studying the market-- several hours each day. But I'm thinking of scaling back the time I put into that-- in which case I would sell my higher risk positions and put money into index funds).

 
 
 
Krishna
Professor Principal
2.3.6  seeder  Krishna  replied to  XXJefferson51 @2.3.2    3 years ago

After I retired I kept working:  I've done some teaching. But for the last few years I'm now self-employed-- as  trader! (stock market)

I'm starting to get bored with that though, and may do something else. (To do well as a trader I've found takes a tremendous amount of time, researching things. I liked it, but its getting to be time for a change).

 
 
 
Sparty On
Professor Principal
2.3.7  Sparty On  replied to  XDm9mm @2.3.3    3 years ago
The absurdity of it is mind numbing.

Sounds like the nature of the beast ..... it is what it is.

I once had to get a background check just to contract a build on a casino.   Now that is absurd.  

I guess they were just checking if i had any Guido associations .... who knows

 
 
 
It Is ME
Masters Principal
3  It Is ME    3 years ago

"But no one benefited more from the price jump than founder and CEO Stephen Schwarzman, 72."

Good for him. jrSmiley_13_smiley_image.gif

Now I wonder if he's willing to buy me a small 60 ft. yacht. jrSmiley_9_smiley_image.gif

 
 

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