Re:Are Index Funds Communist?
by JumpCrisscross on Thursday January 17, 2019 @05:15PM
(#18935182)
> the value of the components of the index is heavily tilted by peoples perception of the value of the index
“In the short run, the market is a voting machine but in the long run, it is a weighing machine” [1].
Dividends don’t care about peoples’ perceptions. Neither do interest payments and other cash-yielding payments. Active investing will always find a way to take advantage of stupid prices.
“In the short run, the market is a voting machine but in the long run, it is a weighing machine” [1].
Dividends don’t care about peoples’ perceptions. Neither do interest payments and other cash-yielding payments. Active investing will always find a way to take advantage of stupid prices.
[1] https://www.goodreads.com/quotes/831517-in-the-short-run-the...