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Jonathan Clements: Worse Than Marxism?

TedTed
in Fund Discussions
FYI: IF YOU’RE WORRIED THAT INDEXING threatens the smooth functioning of the stock market, it’s helpful to spend an hour chatting over coffee with Charles Ellis—which is what I did last week when I was in New Haven, Connecticut. Ellis is one of indexing’s most eloquent advocates, including in his bestselling book Winning the Loser’s Game and in his latest tome, The Index Revolution.
Regards,
Ted
http://www.humbledollar.com/2017/12/worse-than-marxism/

Comments

  • LewisBraham
    edited December 2017
    “Every time you want to buy a stock, you have to buy from a person who is just as well informed, just as well educated and has just as much computer power,” he points out. “To win, all you have to do is beat a competitor who has everything you have.”
    But not everyone has the same career risk. If for instance you are a money manager today facing outflows because your fund is underperforming benchmarks top heavy with overpriced FANG/tech stocks, you now feel the pressure to buy those stocks whether you think they're rationally priced or not or face the potential of losing that lucrative money manager job. Investors who can afford to have a long time horizon can make different choices. This is what Warren Buffett calls time horizon arbitrage.
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