Badtux the Snarky Penguin on Nostr: The rise of massive index mutual funds like The Vanguard Group has changed the ...

The rise of massive index mutual funds like The Vanguard Group has changed the equation a bit since the 1990s. Vanguard Group now owns 7.67% of Tesla stock for example. People park their money in these index mutual funds and the fund manager in return buys a market basket of stocks... and leaves the money there unless rebalancing because relative valuations have changed. This is unprecedented.