Size of Investment Industry and Aha Moment

The hedge fund industry is valued at about two and a half to three trillion dollars, while mutual funds are even larger, estimated at 10 times or more. Adding ETFs and passive investments further expands the industry. The aha moment for understanding this market was in early 2019 when the speaker had a conversation with Michael Green, who helped to explain the impact of index funds. This, combined with the speaker's own insights into market structure, led to a deeper understanding of the investment industry.