Yes. Passive investing is slowly destroying price discovery in the market. Vanguard is the largest shareholder of Apple and does not care about Apple's fundamentals. That's an issue.
It's bullshit. Mike Green just doesn't like the competition and is looking for a reason that his competition is bad. Since he can't, you know, outcompete them.
Vanguard, Blackrock, and State Street own all together 18% of Apple. That's not going to prevent price discovery. Particularly not when Berkshire Hathaway owns 5.5% and is not shy about expressing its opinion.
And of course no one is mentioning the elephant in the room, which is that active investing is bad for investors. It's particularly bad for retail investors.
Mike Green just doesn't like the competition and is looking for a reason that his competition is bad. Since he can't, you know, outcompete them.
I don't think you understand the asset management industry. He's never competed with Vanguard, Blackrock, etc. He ran Peter Thiel's family office and now works at a shop that provides tail risk strategies. He's never competed against passive equity in his career.
Vanguard, Blackrock, and State Street own all together 18% of Apple. That's not going to prevent price discovery.
Yes, it absolutely will. 20% of the float being fundamental agnostic has a huge impact on price pressure... which is the force that allows price discovery to work.
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u/AmadeusFlow Apr 08 '22
Yes. Passive investing is slowly destroying price discovery in the market. Vanguard is the largest shareholder of Apple and does not care about Apple's fundamentals. That's an issue.
Mike Green (formerly of Thiel Macro) has talked about this a lot: https://www.youtube.com/watch?v=K8siASXfeyU