4min chapter

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#34: Michael Green On Detecting The Greatest Value In Markets Today

Superinvestors and the Art of Worldly Wisdom

CHAPTER

The Role of Passive Investing in the Market

The way to think about passive and the reason why we've had somewhat unique insights is that we stopped thinking of them as passive. They are not passive on average because they are continually receiving inflows. In other words, they are just constantly buying. As the proportion of black balls grows, the frequency with which you can't transact rises. That creates conditions for discontinuous markets.

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