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by twoodfin
552 days ago
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That’s what Vanguard investors are paying for, or rather, not paying for. Passive investing is cheaper, this is what “passive” means. Historically, in the aggregate, boards of US public companies are competent enough to create good returns without strategic investor direction. |
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In those historic times, stock ownership was much more restricted to rich investors (not a good thing) who are far more opinionated in AGMs (a very good thing) than some faceless index fund or Robin Hooder who doesn’t even realize they should vote at all.
So boards used to perform but they also used to have pressure to perform. Will they still perform on autopilot? Maybe, but chaos always wins unless there’s a forcing function (your votes at the AGM).