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“Passive investing” is not the same as “buying anything at any price”. Index funds follow transparent rules and weights. If the company is overvalued, that over

by PUSH_AX 5mo ago

“Passive investing” is not the same as “buying anything at any price”. Index funds follow transparent rules and weights. If the company is overvalued, that overvaluation is set by the wider market, not just passive investors.

chronic29521 5mo ago
> If the company is overvalued, that overvaluation is set by the wider market, not just passive investors. You probably also believe the markets are fully efficient and there is no insider trading ever. Historically, it takes 6-12 months for the wider public market to determine the correct valuation. That's why SpaceX, Anthropic, OpenAI are rushing to 15 days. They know something bad will happen between 15 days and 6 months after IPO.
- deleted 5mo ago
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xboxnolifes 5mo ago
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groundzeros2015 5mo ago
Doesn’t it rely on the active market to do the pricing?