This Asset Manager Stock Gets Paid on Money It Never Owns. Could It Set You Up for Life?
Managing investments may not quite be the business you think it is.
Overview
Ever hear the phrase, "It takes money to make money?" It's often true, in the sense that you must put your own capital at risk if you want to grow it. But it's not true in all cases.
Take the asset management business as an example. Whether you're talking about hedge funds, mutual funds, or registered investment advisors managing individuals' money, these businesses generate revenue from money that's never actually owned -- just controlled -- by the people overseeing it.
Details
And there's one asset manager most investors are more familiar with than perhaps they even realize. That's BlackRock (NYSE: BLK). But is this publicly traded money manager one you'd want to buy and hold forever?
Source
Originally published at www.fool.com.