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Failed companies are dropped from stock market indices, so I wonder if investing in indices is in effect a method of biasing the selection in favor of "winners"
by pcrh 6y ago
Failed companies are dropped from stock market indices, so I wonder if investing in indices is in effect a method of biasing the selection in favor of "winners" over the general performance of the economy....?
- lcrmorin 6y agoIt is, but mostly due to their selection process, basically removing poorly performing companies and adding sane one that are about to grow.