The Limit of Active Managers

There's a finite amount of money in there, right? Eventually the bank will run dry. Right now, this is effectively an automatic bid that goes on every day by money flowing into indexes. But what happens when the net inflows start to peter out, then the baton passes to the marginal trade becomes out of the active manager. And if you think just not owning those, those few companies isn't enough to make a difference, let me share something with you that I think you'll find very edifying. Of the 11.9% return of the index, almost 40% of it came from just 15 names,. If you didn't happen to own those 3% of the

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