Re:Bogle Sounds a Warning on Index Funds
by dragonwriter on Friday November 30, 2018 @11:25AM
(#18570191)
> If 90% of shares are non-intervening that means hostile takeovers are now 10x cheaper to implement.
Naively (ignoring other dynamics of index funds), sure, compared to 100% investors actively engaged in governance. But I suspect investment in index funds replaces largely hands-off direct investment and so, market wide, has virtually no average effect on that (though it may shift the effect among firms compared to those investors doing so directly.)
Naively (ignoring other dynamics of index funds), sure, compared to 100% investors actively engaged in governance. But I suspect investment in index funds replaces largely hands-off direct investment and so, market wide, has virtually no average effect on that (though it may shift the effect among firms compared to those investors doing so directly.)