FYI: The power of individual companies barely features in discussions of active versus passive investing.
It ought to. The increasing returns to scale that certain companies benefit from has built more than just great investment returns. Technology-enabled “platforms” are omnipresent in our lives, with implications for everyone from parents and policymakers to C-suite executives. As these firms compound in power without much apparent profit, one can’t help but see them in their own category.
Regards,
Ted
https://blogs.cfainstitute.org/investor/2017/11/28/active-vs-passive-vs-amazon-et-al/
