Comments (4)

  1. D says:

    A very impressive article. Thanks for clarifying how passive index investing is fueling self-reinforcing bubble manias — a simple, brilliant insight.

  2. John Perris says:

    Tucson RE boomed up until 2006. A “sure thing” was buying your retirement home ahead of time. In roughy 40 years our development went from 40k to 320k. We sold for 285k, and could re buy at 310.

    Why, the old people died, the people caught with two houses underwater, sold at any price. This was not indexing, just following the crowd.

    In Oregon, we have a life lease, and couldn’t care less about inflation!
    JRP

  3. Matt says:

    Good show on the improved sizing of the presentation materials…….good materials too.

  4. Great letter this week. You hit on topic after topic that I have tried to communicate but you do it so much better than I have managed. Well done.
    One other effect of the passive index explosion has been the deterioration of corporate governance as these passive fund votes generally default to incumbent management.

    Bruce

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