Passive Investing "Worse Than Marxism"

[Gumby]

Can we institute a standing committee and 5-year plan now?

We could use one, for more glorious community of FIRE.

Here in the People's Republic of FIRE, we work on One More Year plans. And since we are all such committed Stakhanovites, we always exceed our quota.

 

[jdmorton]

Might as Well Make it a Trifecta - WSJ Blog on Friday

Are Index Funds Eating the World? - MoneyBeat - WSJ. This one by Jason Zweig.

Must be the end of the (mutual fund) world. Where's Slim Pickens when you need him?

https://en.wikipedia.org/wiki/Slim_Pickens#/media/File:Slim-pickens_riding-the-bomb_enh-lores.jpg

 

[unclemick]

From John C. Bogle
Founder and Former Chairman, The Vanguard Group
to the
Washington State University
Pullman, Washington
April 13, 2004
https://personal.vanguard.com/bogle_site/sp20040413.html

Our introduction of First Index Investment Trust was greeted by the investment community with derision. It was dubbed "Bogle's folly," and described as un-American, inspiring a widely-circulated poster showing Uncle Sam calling on the world to "Help Stamp Out Index Funds."

Love this one. The horse I rode in on. And the the foundation of my retirement.

However being male 'resistance is futile' so a few good stocks and other transgressions on the side over the decades which did not materially alter my path to ER and in ER. Hindsight back to 1966 when I started investing revealed that 'hurry up just stand there' ala Mr B's advice was in fact my best strategy.

heh heh heh - As to the article. I don't think Gambling Casinos or stock markets will close but they may be severely reduced in stature.

 

[CaliforniaMan]

The idea that index funds will disrupt stock valuations is just plain silly in my opinion. If there is money to be made picking or timing stocks, then it will happen, and those funds will grow until their methods no longer work. Thus the market stays efficient. The only way index funds could disrupt market pricing is if the world runs out of greedy people. Are we really worried about this happening?

I think the real issue they are worried about is "Where are all the stockbrokers yachts?"