Elon Musk and Cathie Wood slam Passive Investing and ETFs: Passive Investing has "gone too far"

Elon Musk, Cathie Wood and Marc Andreeson have criticized passive investing. This started with Marc Andreeson noting that passive fund managers often vote their shares contrary to shareholders' best interests (often acting ultra vires, potentially promoting "ESG" initiatives that might promote their own social views, but not maximize shareholder wealth). Elon Musk then noted that passive investing has gone "too far" and that if everyone is a 'passive investor' then, ironically, arbitrageurs will no longer force shares to converge towards their true value. Cathie Wood then notes that if one invested in a S&P 500 index, then one would not have invested in Tesla in its early stages.

I also evaluate whether their comments about passive investing and ETFs make sense. This includes whether ETFs are a "good" investment (or whath one would consider when evaluating ETFs).

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Time stamps
* 0:00 Introduction
* 0:35 Elon Musk, Cathie Wood, and Marc Andreeson tweets on passive investing, ESG, and ETFs
* 11:05 Are they correct about passive investing?
* 14:04 Active Investing is not great for everyone...
* 16:05 Overall thoughts

#ETF #PassiveInvesting #Investing