passive investors

3 statements across 3 episodes · 1 bullish · 2 bearish · 3 people on the record · first statement Aug 26, 2019 by Eric Ries · across every show →

Everything said about passive investors, oldest first

Aug 26, 2019 bearish
Prediction Not checkable as stated
Ries: Most passive funds will not register for LTSE tenure tracking
“In the short term, I don't expect that most passive investors will do this registration that we're talking about, because they don't care about the governance side of companies.”
Eric Ries Aug 26, 2019 ▶ 32:12 Eric Ries – Lean Start-Ups and the Long-Term Stock Exchange (Capital Allocators, EP.107)
Jan 27, 2020 bearish
Insight
Seides: High passive ownership risks corporate governance by insulating executives
“What is troubling is the ramifications that has on the governance of the underlying companies that will drive the returns. So you could imagine if you have 95% passive investors that corporate executives could do whatever they want because their shareholder ba…”
Ted Seides Jan 27, 2020 ▶ 28:54 Ted Seides – A Rational Reminder (Capital Allocators, EP.121)
Mar 23, 2026 positive
Insight
Grantham: Passive investors must outperform active managers net of fees
“By definition, they sum to the market minus the cost of transactions and minus the fees that they charge. And the guys at the bar watching you, they sum to zero. There are no costs. So they will beat you. As a group, they must outperform you.”
Jeremy Grantham Mar 23, 2026 ▶ 54:54 Jeremy Grantham – Bubbles, Value Investing, and the Long Game at GMO (EP.493)
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