Activist investing involves investing in companies, becoming a significant stakeholder, and actively participating in improving the company's performance. This approach contrasts with passive index funds, where no human judgment is involved. Activists focus on companies that may have lost their way and work towards helping them succeed. Activists engage with management, often taking a seat on the company's board to influence decisions and improve operations. By gaining credibility and media attention, activists can motivate management teams to make necessary changes. In extreme cases, activists can replace the board and management of a company. Over time, activist investing has helped restore a balance of power between shareholders and company management, leading to better stock market performance. Activists, although not controlling shareholders, aim to influence other shareholders to support their ideas and drive company direction. This more democratic approach to running companies benefits from thought leaders like activists, who dedicate time and resources to identifying opportunities and shaping company strategies.