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'Information is power': Blackstone gets better as its business gets bigger, CEO says

Sam Meredith
  • "Interestingly for us, we keep getting better as we get bigger because we know more," Blackstone CEO Steve Schwarzman told CNBC at the World Economic Forum in Davos on Tuesday.
  • His comments come at time when financial markets are increasingly concerned about a serious global economic slowdown.

Blackstone BX chief executive and co-founder Stephen Schwarzman believes that when it comes to businesses optimizing their performance: "Information is power."

"When you deploy too much money into one strategy, you'll crush your performance because there aren't enough interesting opportunities (and) you don't have a differentiated model … That happens all the time," Schwarzman told CNBC's Andrew Ross Sorkin at the World Economic Forum ( WEF ) in Davos on Tuesday.

His comments come at time when financial markets are increasingly concerned about a serious global economic slowdown, with a long-running U.S.-Sino trade war souring business and consumer sentiment worldwide.

Nonetheless, Blackstone's Schwarzman said there is an optimal amount of capital for every business strategy.

The New York-based financial giant is the world's largest business in the alternative asset industry, Schwarzman said, with close to $500 billion in capital at present.

"Interestingly for us, we keep getting better as we get bigger because we know more. There is nothing more desperate than a few people in a room trying to figure out the entire world with almost no help … That is a start-up, that's why most of them fail," Blackstone's CEO said during a panel discussion at WEF.

"When you get to a certain scale, as long as you limit the amount of capital you have for a strategy and you can keep inventing new strategies, then you do actually quite wonderfully well."




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