Common ownership is a powerful way to reduce costs relative to active investing. But it can also lead to higher prices and more competition, writes Felix Riht. The link between common ownership and changes in performance becomes stronger as the shares are owned by one person rather than many people at same time.
In the latest episode, Felix and Mihir discuss the potential dark side of the rise of index investing and who should end up owning Spirit Airlines, JetBlue or Frontier.