Blackrock is a fiduciary investor. They held 2,050 engagements with 1,458 companies based in 42 markets from July 2018 to June 2019 (2019 Investment Stewardship Report).
Long term sustainable value is the Blackrock heart for an investment decision.
Surprisingly, they say an articulated purpose is a foundation for a successful strategy.
Billionaire Larry Fink, chairman and CEO of Blackrock, wrote, ‘without a sense of purpose, no company, either public or private, can achieve its full potential’ (2018 letter to CEO’s).
He argues that a purpose-driven approach to corporate strategy:
· Aligns employees with management’s strategy
· Builds business confidence, and
· Creates loyal customers
These words are astonishing and welcome.
As you know, traditional investment practices rely on conventional financial metrics. It’s a rare occasion when qualitative factors – even when they promise value – are allowed too loud a voice.
But, in Larry Fink, we have a rich and powerful investor advocating a sense of purpose as a critical investment criterion – because it delivers more cash across the longer term.
Did you know that a sense of purpose is a feeling, articulated as a thought?
In the year 2000, this conversation was a wish in the wind. Fortunately, the wind has changed direction.
So, if you want long term sustainable value, look no further than your beating heart - the home of your sense of purpose.
And perhaps, talk to us.