Comments by "Fox" (@tomlxyz) on "The Index Fund \"Tipping Point\"" video.

@teaadvice4996 they don't get any money when you buy a share. The only way the share price might help them is by maybe making it easier to get loans but banks will still look at the company's ability to pay back
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@IamGrimalkin higher risk doesn't cause outperforming. More risk asks for higher returns because it has to account for losses. Just like how people with bad credit have to pay higher interest rates to compensate for others in their risk category who go bankrupt. The historical outperformance of small cap has more to do with it being less attractive because it's more work to invest in a lot of small companies than to invest in a few big ones. But later funds have been created to specifically target small call so now that's mostly gone. As always, an investment strategy only beats the market until too many use it
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Damn, I've seen so many videos saying that we're far away from such a tipping point but I've never heard the statement that unskilled investors switching to index funds making the market more efficient, even though it makes perfect sense
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Isn't that what happened when covid first came? (with among other things, people not being able to get a haircut due to lock downs)
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@Ikaros23 if you're actively deciding on when to buy and sell you're not a passive investor, even if you invest into an index fund. Besides those people usually invest in all kinds of things, not just the broad market, so there's some price finding going on
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