Morgan Stanley vs BLK vs both - Stocktrades Canada

When I started investing a year ago I put money into MS at the suggestion of a family member (it has gone well). I see that BLK is listed as a foundational stock but is it redundant to have both? I’m also not exactly following the difference between an Investment Bank like MS or a Investment Manager such as BLK (apart from the obvious fact BLK creates investment tools like ETFs, etc).

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Asked on June 17, 2023 3:11 pm

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Hey there,

You pretty much described the differences which are the obvious ones. You could certainly own both even though they are in the same sector, they are different industries. The thing is, if the markets struggle or do well, both of these will be impacted as they are sensitive to market activity and performance.

Personally, I'd have no problems owning both but I would pay attention to allocation. Typically I'd aim for no more than 5% for any single position but if I was to own both MS or BLK, i'd probably keep the combined total at around 7-8% of my portfolio. I'd feel like 10% allocation would be a little much for my risk tolerance.

Mat

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Posted by Mathieu Litalien

Answered on June 18, 2023 6:50 am

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