Really, though, the problem is that the whole stock market has changed.
“Back in the ’60s, the mistakes were made by individuals… Now you can only buy from or sell to other professionals,” he continued.
“Secondly, they all have access to the same information because everybody has the internet and that means world-wide information is yours instantaneously all of the time.”
That is why I invest mainly in index funds.
I stick mainly to index funds as well. But when Buffet throws in the towel that’s likely a signal that value investing is about to come back into vogue. The fall of Tesla could trigger a re-valuation of the handfull of issues trading at eye-watering multiples which have driven the S&P (which is capital weighted).
If everyone invests in index fund, will the professionals lose their high paying jobs and be replaced by a few low cost ETFs?
Is this the reason for the lackluster housing market in NYC?
That trend has been happening for years. Hedge funds close all the time. It’s mostly idiotic pension funds that are still using hedge funds. They pay 2/20 fees with other people’s retirement money to get kickbacks from hedge funds.