Henry McKelvey Blodget
|Education||Yale University (BA)|
|Known for||Former securities analyst at Merrill Lynch during dot-com bubble|
Henry McKelvey Blodget (born 1966) is an American businessman, investor and journalist. He is notable for his former career as an equity research analyst who was senior Internet analyst for CIBC Oppenheimer and the head of the global Internet research team at Merrill Lynch during the dot-com era. Due to his violations of securities laws and subsequent civil trial conviction, Blodget is permanently banned from involvement in the securities industry. Blodget is the CEO of Business Insider.
Blodget was born and raised on Manhattan's Upper East Side, the son of a commercial banker. He attended Phillips Exeter Academy and received a Bachelor of Arts degree in history from Yale University, where he was a member of The Society of Orpheus and Bacchus.
After college, he taught English in Japan, then moved to San Francisco to be a writer while supporting himself by giving tennis lessons. He was also a freelance journalist and 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 the common stock of Amazon, AMZN (then trading at $240) would be priced at $400 within a year. This was thought highly unlikely at the time; however, just three weeks later Amazon's stock price passed that mark, a gain of 67%. This call received significant media attention. Two months later, Blodget accepted a position at Merrill Lynch, and frequently appeared on CNBC and similar shows.
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. He accepted a buyout offer from Merrill Lynch and left the firm in 2001.
In 2003, Blodget was charged with civil securities fraud by the U.S. Securities and Exchange Commission. and settled the charges with a payment of $4 million without admitting or denying the allegations and their underlying facts and findings. He was permanently barred from the securities industry and censured by the SEC, NASD, and NYSE. The charges arose from actions Blodget took from 1999-2001 while at Merrill Lynch, which included issuing materially misleading research reports on internet companies, and making exaggerated or unwarranted claims about them to customers.
Following his departure from the financial markets, Blodget resumed his career as a financial and economics writer. He was appointed CEO of Cherry Hill Research, a research and consulting firm, and contributed to Slate, Newsweek International, The New York Times, Fortune, Forbes Online, Business 2.0, Euromoney, New York magazine, and The Financial Times.
Blodget rose to prominence again as co-founder, CEO, and editor-in-chief of Business Insider (initially known as Silicon Alley Insider) in 2007. He was also a frequent contributor to the Seeking Alpha website at the same time. While CEO and owner of Business Insider, he offered free reproduction of all content to readers under Creative Commons licensing. In 2014, Jeffrey Bezos purchased a stake in Business Insider.
As of 2017, Blodget remains the CEO and editor-in-chief of Business Insider, now a general news website. He continues to contribute articles to Slate, Newsweek, and New York magazine. Blodget's articles focus 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. His Slate articles about investing carry a seven-paragraph disclosure of potential conflicts of interest.
In January 2007, Blodget published The Wall Street Self-Defense Manual: A Consumer's Guide to Intelligent Investing in January 2007.
Blodget used to co-host the Daily-Ticker broadcast with Aaron Task weekdays at Yahoo! Finance.