Dumb Money
"Paradoxically, when ‘dumb’ money acknowledges its limitations, it ceases to be dumb.” Warren Buffett, 1993 Berkshire Shareholder Letter.
Can all those index funds create a bubble by distorting the prices of a lot of companies? Lot of money happens to be invested in a variety of small companies whose shares have low volume of trades. Who will buy them once the passive funds stop investing?
