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This isn't accidental, it's malicious enemy action. Overpaid fund managers are sick of seeing their business walk out the door in favor of funds with low/no fee
by Analemma_ 1y ago
This isn't accidental, it's malicious enemy action. Overpaid fund managers are sick of seeing their business walk out the door in favor of funds with low/no fees, so there's a very active submarine campaign in progress to make BlackRock, Vanguard etc. seem like mustache-twirling villains, instead of "just a bunch of people owning shares".
For example, note how all the stories about institutional investors buying up housing stock mention BlackRock, even though REITs and private equity firms are doing much, much more of this business.
- hylaride 1y agoAlso, Vanguard is run as a sort of cooperative where it is indirectly owned by the fundholders, which is why they were always incentivized to LOWER fees. The founder of Vanguard (Jack Bogle) probably left tens of billions of wealth on the table by creating that model (and he had no regrets, FWIW). There are concerns because by default they usually cast votes by board recommendations and since they have such a huge stewardship of the stock market it means others can have more direct influence, but Vanguard itself is otherwise as neutral a stock ownership intermediary as can pretty much exist.
- eddythompson80 1y agoIt’s especially sad when you read or listen to what Jack Bogle had to say. Such a thoughtful, kind and honest person who choose to help people invest rather than pocket their money. But the modern financial system is too complex for your average moron.
- mancerayder 1y agoThere is confusion on your part. Blackrock owns a number of different funds that do things like you describe (and explicitly called private equity funds).