Blackstone chief executive and co-founder Steve 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.