OT-WSJ piece on Index Voting

https://www.wsj.com/articles/the-70-blackrock-analysts-who-s…

Worthy of concern. Excerpt:

“The surging popularity of index funds has made their managers the largest shareholders in many public companies. That is especially true of BlackRock, the world’s biggest investor with some $10 trillion under management. The amount of equity the firm manages for passive investors has more than tripled over the past decade.

BlackRock’s growth and the way it has sought to wield its influence has rankled corporate executives, particularly those in the oil-and-gas industry. BlackRock’s stewardship team voted in favor of 47% of environmental and social shareholder proposals last year. Its support helped an activist investor win board seats at oil giant Exxon Mobil Corp.

“We have a new bunch of emperors, and they’re the people who vote the shares in the index funds,” Charlie Munger, the vice chairman of Berkshire Hathaway Inc. and Warren Buffett’s business partner, said earlier this year. “

8 Likes

David Stein had a recent podcast on this topic. IIRC, he said at current rates of index fund investing Vanguard and BR will hold 70% of the voting shares of the SP500 in ten years

1 Like