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Comment This is another reason I don't do social media (Score 5, Informative) 132

When a friend died and I tried to inform LinkedIn, they saw fit to suggest that I might want to do a mountain of work to support my information. They thought I might want to go further out of my way to help them maintain their data and their profitability. That's absurd. They can think again.

Comment the only people who are fit to rule don't want to (Score 1) 288

Arthur C Clarke and Douglas Adams had the right idea here. You want people who on no account want the job. You promise them time off for good behaviour. In other words if they do a good job they won't be forced to do it for as long.

No sane person wants to control others. But somebody has to.

Comment Re:real interesting subject (Score 2) 123

That actively managed funds underperform the index fund after fees is not inconsistent with the hypothesis that they may overperform them before fees. My hypothesis is that the active fund managers and not their investors get the benefit of their research. As you say the fees on actively managed funds have decreased, however I do not think they can ever be as low as those on indexed funds. Not in the long term anyway, otherwise the manager is working for nothing.

I doubt you are claiming that if everyone invested in the index or randomly, there wouldn't be any opportunities for those who research.

My claim is that before the rise of index funds investors were paying way too much for the research of active fund managers, the effect of the index funds has been to reduce what active fund managers can charge for it, and if you are right, it may be that their investors are still paying too much.

I don't think it's controversial that index funds are taking a free ride on traders and active fund managers. After all the price is determined by the competition between these people to make a buck at each others expense. As a investor in index funds myself, my attitude is ha ha ha, you people do all this work. As a result of your hubris I get the benefit of the valuation that occurs as a result of the competition.

Comment real interesting subject (Score 2) 123

If you are one of those fund managers who makes massive fees, you won't be thanking him. Curiously these index funds exploit the efficiency of the market created by traders and actively traded funds and reduce it by creating vast category of new investors that don't contribute to the valuation effort.

My hypothesis is that a secondary effect of them is to improve the performance of those who are prepared to research. The tertiary effect is that people drift back to actively managed funds. The net effect is that the market achieves balance, not only between those who buy and sell, but also between those who spend time and money trying to value the market and those who can't be arsed.

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IF I HAD A MINE SHAFT, I don't think I would just abandon it. There's got to be a better way. -- Jack Handley, The New Mexican, 1988.

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