The Big 3 asset managers cast 25% of votes in the board elections of S&P 500 firms. Soon they alone hire & fire leaders of nearly all big companies.
Hayeks idea was that markets are effective because information is decentralised. Is this centralisation not causing inefficiency?
The idea behind index funds was to passively track the market and get the average return for low costs. But not only do these funds actively influence the markets, they soon alone have influence over board elections.
@LeoSammallahti @douginamug here's the founder of Vanguard with the same concern https://www.wsj.com/articles/bogle-sounds-a-warning-on-index-funds-1543504551
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