Henry Blodget
Encyclopedia
Henry Blodget is an American former equity research analyst, currently banned from the securities industry, who was senior Internet analyst for CIBC Oppenheimer
during the dot-com bubble
and the head of the global Internet research team at Merrill Lynch
. Blodget is now the editor and CEO of The Business Insider, a business news and analysis site, and a host of Yahoo Daily Ticker, a finance show on Yahoo.
Blodget received a Bachelor of Arts
degree from Yale University
and began his career as a freelance
journalist
and was a proofreader for Harper's Magazine
.
In 1994, Blodget joined the corporate finance training program at Prudential Securities, and, two years later, moved to Oppenheimer & Co. in equity research. In October 1998, he predicted that Amazon.com
's stock price would hit a pre-split price of $400 (which it did a month later, gaining 128%).
This call received significant media attention, and, two months later, he accepted a position at Merrill Lynch. Blodget's influence continued to increase, and, in 2000, he was voted the No. 1 Internet/eCommerce analyst on Wall Street by Institutional Investor, Greenwich Associates, and TheStreet.com
. In early 2000, days before the dot-com bubble
burst, Blodget personally invested $700,000 in tech stocks, only to lose most of it in the years that followed. In 2001, he accepted a buyout offer from Merrill Lynch and left the firm.
Eliot Spitzer
, published Merrill Lynch
e-mails in which Blodget gave assessments about stocks which conflicted with what was publicly published. In 2003, he was charged with civil securities fraud
by the U.S. Securities and Exchange Commission. He agreed to a permanent ban from the securities industry and paid a $2 million fine plus a $2 million disgorgement
.
, Newsweek
and New York
. He began writing for Slate in January 2004, initially covering the Martha Stewart
trials. In July 2004, Blodget began writing a four-part series entitled "The Wall Street Self-Defense Manual" for the magazine. He examined the role of analysts, noting: "Predicting future market performance is not an exact science, and those who pretend it is do so at their peril." This series expanded to a total of 13 articles.
Blodget's later articles for the magazine have focused on the return-limiting actions of individual investors, including listening to analysts and the financial media, and relying on active management such as mutual and hedge funds. Blodget now recommends low fee index investing to capture the broad return, while focusing on reduced portfolio turnover to minimize taxes. His Slate articles about investing carry a seven-paragraph disclosure of potential conflicts of interest.
He published The Wall Street Self-Defense Manual: A Consumer's Guide to Intelligent Investing in January 2007.
.
CIBC World Markets
CIBC World Markets is the investment banking subsidiary of the Canadian Imperial Bank of Commerce. The firm operates as an investment bank both in the domestic and international equity and debt capital markets...
during the dot-com bubble
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...
and the head of the global Internet research team at Merrill Lynch
Merrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
. Blodget is now the editor and CEO of The Business Insider, a business news and analysis site, and a host of Yahoo Daily Ticker, a finance show on Yahoo.
Blodget received a Bachelor of Arts
Bachelor of Arts
A Bachelor of Arts , from the Latin artium baccalaureus, is a bachelor's degree awarded for an undergraduate course or program in either the liberal arts, the sciences, or both...
degree from Yale University
Yale University
Yale University is a private, Ivy League university located in New Haven, Connecticut, United States. Founded in 1701 in the Colony of Connecticut, the university is the third-oldest institution of higher education in the United States...
and began his career as a freelance
Freelancer
A freelancer, freelance worker, or freelance is somebody who is self-employed and is not committed to a particular employer long term. These workers are often represented by a company or an agency that resells their labor and that of others to its clients with or without project management and...
journalist
Journalist
A journalist collects and distributes news and other information. A journalist's work is referred to as journalism.A reporter is a type of journalist who researchs, writes, and reports on information to be presented in mass media, including print media , electronic media , and digital media A...
and was a proofreader for Harper's Magazine
Harper's Magazine
Harper's Magazine is a monthly magazine of literature, politics, culture, finance, and the arts, with a generally left-wing perspective. It is the second-oldest continuously published monthly magazine in the U.S. . The current editor is Ellen Rosenbush, who replaced Roger Hodge in January 2010...
.
In 1994, Blodget joined the corporate finance training program at Prudential Securities, and, two years later, moved to Oppenheimer & Co. in equity research. In October 1998, he predicted that Amazon.com
Amazon.com
Amazon.com, Inc. is a multinational electronic commerce company headquartered in Seattle, Washington, United States. It is the world's largest online retailer. Amazon has separate websites for the following countries: United States, Canada, United Kingdom, Germany, France, Italy, Spain, Japan, and...
's stock price would hit a pre-split price of $400 (which it did a month later, gaining 128%).
This call received significant media attention, and, two months later, he accepted a position at Merrill Lynch. Blodget's influence continued to increase, and, in 2000, he was voted the No. 1 Internet/eCommerce analyst on Wall Street by Institutional Investor, Greenwich Associates, and TheStreet.com
TheStreet.com
-History:TheStreet.com, Inc., was co-founded in 1996 by Jim Cramer and Martin Peretz. It is traded on the NASDAQ Global Market. The company is headquartered at 14 Wall Street in New York City. Its stock was made public in May 1999 under the direction of past Chairman and Chief Executive Officer...
. In early 2000, days before the dot-com bubble
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...
burst, Blodget personally invested $700,000 in tech stocks, only to lose most of it in the years that followed. In 2001, he accepted a buyout offer from Merrill Lynch and left the firm.
Fraud allegation and settlement
In 2002, then New York State Attorney GeneralNew York State Attorney General
The New York State Attorney General is the chief legal officer of the State of New York. The office has been in existence in some form since 1626, under the Dutch colonial government of New York.The current Attorney General is Eric Schneiderman...
Eliot Spitzer
Eliot Spitzer
Eliot Laurence Spitzer is an American lawyer, former Democratic Party politician, and political commentator. He was the co-host of In the Arena, a talk-show and punditry forum broadcast on CNN until CNN cancelled his show in July of 2011...
, published Merrill Lynch
Merrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
e-mails in which Blodget gave assessments about stocks which conflicted with what was publicly published. In 2003, he was charged with civil securities fraud
Securities fraud
Securities fraud, also known as stock fraud and investment fraud, is a practice that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of the securities laws....
by the U.S. Securities and Exchange Commission. He agreed to a permanent ban from the securities industry and paid a $2 million fine plus a $2 million disgorgement
Disgorgement (law)
Disgorgement is the forced giving up of profits obtained by illegal or unethical acts. A court may order wrongdoers to pay back illegal profits, with interest, to prevent unjust enrichment...
.
Writing
As of 2011 he is co-founder, CEO/Editor-in-Chief of The Business Insider, a blog about Internet business trends and research. He is a frequent contributor to the magazines SlateSlate (magazine)
Slate is a US-based English language online current affairs and culture magazine created in 1996 by former New Republic editor Michael Kinsley, initially under the ownership of Microsoft as part of MSN. On 21 December 2004 it was purchased by the Washington Post Company...
, Newsweek
Newsweek
Newsweek is an American weekly news magazine published in New York City. It is distributed throughout the United States and internationally. It is the second-largest news weekly magazine in the U.S., having trailed Time in circulation and advertising revenue for most of its existence...
and New York
New York (magazine)
New York is a weekly magazine principally concerned with the life, culture, politics, and style of New York City. Founded by Milton Glaser and Clay Felker in 1968 as a competitor to The New Yorker, it was brasher and less polite than that magazine, and established itself as a cradle of New...
. He began writing for Slate in January 2004, initially covering the Martha Stewart
Martha Stewart
Martha Stewart is an American business magnate, author, magazine publisher, and television personality. As founder of Martha Stewart Living Omnimedia, she has gained success through a variety of business ventures, encompassing publishing, broadcasting, and merchandising...
trials. In July 2004, Blodget began writing a four-part series entitled "The Wall Street Self-Defense Manual" for the magazine. He examined the role of analysts, noting: "Predicting future market performance is not an exact science, and those who pretend it is do so at their peril." This series expanded to a total of 13 articles.
Blodget's later articles for the magazine have focused on the return-limiting actions of individual investors, including listening to analysts and the financial media, and relying on active management such as mutual and hedge funds. Blodget now recommends low fee index investing to capture the broad return, while focusing on reduced portfolio turnover to minimize taxes. His Slate articles about investing carry a seven-paragraph disclosure of potential conflicts of interest.
He published The Wall Street Self-Defense Manual: A Consumer's Guide to Intelligent Investing in January 2007.
Current career – Internet broadcaster
As of April 2011, Blodget co-hosts the The Daily-Ticker broadcast with Aaron Task weekdays at Yahoo! FinanceYahoo! Finance
Yahoo! Finance is a service from Yahoo! that provides financial information. It is the top financial news and research website in the United States, with more than 23 million visitors in February 2010, according to comScore....
.
External links
- Silicon Alley Insider Henry Blodget's multi-author technology blog
- Internet Outsider Henry Blodget's old blog
- The Wall Street Self-Defense Manual – Promotional site for Blodget's first book.