“Index-based investing is a form of socialism. Our investment system is broken,” the longtime Tesla bull said, calling proxy firms “menaces to innovation.”
In her mind it’s socialism because index funds are a kind of collective action: investors (including me) put their money into them, and then the funds are powerful enough to act in the interests of the investors. Of course the fund managers are really acting in their own best interests, but because both groups are heavily invested in the same fund, their interests align.
When they try to give $1 trillion with a T to Elon Musk by diluting existing shares to do it (literally robbing from people’s retirement accounts to make him richer), index funds resist this and use their influence to try to get other investors to do the same.
She thinks index funds should just shut their mouths and quietly accept dilution of investor shares in order to make the oligarchs even more absurdly wealthy. Just stop fighting and it’ll all be over soon.
Isnt the corporate excuse for inhumane, unethical and borderline illegal behavior usually that they have a legal obligation to protect the interests of their share holders? So how is diluting the stock to benefit one man legal then?
In her mind it’s socialism because index funds are a kind of collective action: investors (including me) put their money into them, and then the funds are powerful enough to act in the interests of the investors. Of course the fund managers are really acting in their own best interests, but because both groups are heavily invested in the same fund, their interests align.
When they try to give $1 trillion with a T to Elon Musk by diluting existing shares to do it (literally robbing from people’s retirement accounts to make him richer), index funds resist this and use their influence to try to get other investors to do the same.
She thinks index funds should just shut their mouths and quietly accept dilution of investor shares in order to make the oligarchs even more absurdly wealthy. Just stop fighting and it’ll all be over soon.
Isnt the corporate excuse for inhumane, unethical and borderline illegal behavior usually that they have a legal obligation to protect the interests of their share holders? So how is diluting the stock to benefit one man legal then?