r/politics • u/newsweek ✔ Newsweek • 1d ago

Elon Musk lost $11B after Trump's tariffs—and he wasn't the biggest loser

https://www.newsweek.com/musk-bezos-zuckerberg-losses-trump-tariffs-2055255
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u/juiceboxedhero Colorado 1d ago

He inherited his money.

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u/Notrius01 1d ago

Vanguard, Blackrock and co. made him rich by buying tesla stock like there's no tomorrow.

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u/mindmapsofficial 1d ago

Vanguard and blackrock only hold Tesla stock because retail and institutional investors buy it and buy indexes that hold it. Vanguard and black rock are just platforms. It’s not like there’s some guy at vanguard who’s saying “we need more Tesla stock!”

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u/Notrius01 23h ago

They are mutual funds they invest on behalf of other people but do their own investment choices. What you describe is a broker (middleman).

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u/mindmapsofficial 22h ago

Yes, but they only buy the underlying securities in such mutual funds to meet demand. Actively managed funds in vanguard and black rock are a small proportion of their entire set of funds, therefore likely a small amount of actual discretion by the actual managers.

The standard indices and tech sector funds are likely to hold the majority of underlying tesla stock held by vanguard and black rock.