BlackRock and Vanguard lead rise of invisible global shareholders

German political economist Werner Rügemer describes the rising influence of invisible shareholders who shape the global economy. According to Rügemer, asset managers and investment funds have emerged as dominant forces in economic and public decision-making, largely due to financial deregulation in the United States during the 1990s.

Major entities such as BlackRock and Vanguard lead a constellation of hundreds of financial entities, including hedge funds and private equity firms. These organizations utilize the capital of the ultra-wealthy to acquire massive stakes in major corporations and banks, effectively replacing traditional banking institutions in their influence.

These groups act collectively as the primary shareholders in many of the world's largest companies. Their portfolios include major technology firms like Amazon, Google, Apple, Microsoft, Tesla, and Nvidia, as well as significant players in the defense, pharmaceutical, and energy sectors, such as Lockheed, Boeing, and Raytheon. Rügemer notes that this influence expanded significantly in Europe following the 2008 financial crisis.