Earlier quoted context omitted.
> Believe it or not, sometimes products are unloaded on one coast, transported by rail, then loaded on a ship on the other coast. That is surprising, since shipping by water is dramatically cheaper than any other form of surface shipping, even factoring the extra distance to sail down to the Panama Canal. What's the point of adding the land leg?
Isn't passage through the Panama Canal expensive?
Bogle Sounds a Warning on Index Funds
211–220 of 234 posts
Re: Bogle Sounds a Warning on Index Funds
#212Earlier quoted context omitted.
Nothing exists in a vacuum just like solely attributing companies adding female directors to a marketing stunt. There was large momentum on this front already that would have happened with or without this.
The point is that this is a positive use of centralized private ownership The only real rebuttal would therefore be negative uses of centralized private ownership
Re: Bogle Sounds a Warning on Index Funds
#213Re: Bogle Sounds a Warning on Index Funds
#214Re: Bogle Sounds a Warning on Index Funds
#215Earlier quoted context omitted.
Index funds don't discriminate against stocks, but they can discriminate against directors and executives who don't deliver their desired profits and returns. Ie, by voting them out. This is already starting to happen. See: https://www.barrons.com/articles/passive-investors-are-the-n...
I mostly read about passive firms voting more on special issues like climate change or good governance. Where did they they talk about voting out directors who didn’t deliver profits? (Honest question, I mostly read the article, then came back to it and hit a paywall.)
Re: Bogle Sounds a Warning on Index Funds
#216Earlier quoted context omitted.
Anecdotally, I have a few friends who work in the railroad industry and they are currently seeing something close to this. The company is almost entirely owned by large institutional funds. Union Pacific has a huge drive for constantly increasing efficiency. Their profits are up significantly year over year, but this fall they cut about 500 jobs from their headquarters in Omaha, around 6% of their Nebraska employees,…
You forgot: there's a hard ceiling to how high they can raise prices, because they have to compete with trucks. Together, that all implies that if they want higher earnings, cost cutting is the only way.
Not always. If you provide a value proposition that a cheaper offering does not, say speed, you can increase volume.
Highway transportation will not likely get much faster, but high speed freight via rail seems like it might have some room to grow.
Re: Bogle Sounds a Warning on Index Funds
#217Earlier quoted context omitted.
The point is that this is a positive use of centralized private ownership The only real rebuttal would therefore be negative uses of centralized private ownership
I never meant to imply positive things couldn’t happen, just that it’s silly to assume one very specific positive thing is the most likely thing to happen.
Re: Bogle Sounds a Warning on Index Funds
#218Maybe I'm misunderstanding something, because I find it odd to hear this from Bogle himself. Vanguard doesn't own or control the equities in their index funds. You do. Vanguard is structured so that you can own your piece of the index fund pie. And while there are large holders of index funds such as Vanguard's Total Stock Market fund, I don't think there are any majority holders. For 51% of equities to be channeled…
Is this statement correct? Your argument hinges on it, so it's important to get a definitive answer.
Re: Bogle Sounds a Warning on Index Funds
#219Earlier quoted context omitted.
> ...filled to the brim with sensors... Has someone actually worked out that tons of sensors will cost far less than people-driven trucks? As it is, fuel is the big cost, followed by driver salary [1]. L5 autonomous driving is not going to come cheap, that gear is going to price as close to 3X driver salary as they can get away with, on the assumption they can run close to around the clock. Whose margin is getting co…
Sensor packages and near-AI compute clusters constantly get cheaper as the technology improves. Today it doesn't make sense, but in 10-15 years when a full self-driving solution costs maybe $1k? It's a no brainer, especially for long haul trucking. I'd guess that putting a security guard on a truck will be an exceptional occurrence, probably only used when the truck is hauling an especially valuable cargo or going th…
I once spoke with a highly-paid driver (used to be a programmer, using the gigs in truck driving to decompress because our industry generally has worse work-life balance than truck driving...chew on that for a bit) about the US logistics industry.
The driver was in high demand because they consistently tested drug-free, carried various kinds of specialized certs, was always on-schedule or always in communication about problems, and fixed many problems on their own. As I remember the explanation, there is some kind of trucking industry-wide database that contains every driver's trucking records, and it shows every ping of their record to everyone. Might have the details wrong, but the gist was every single time a competing trucking company pinged their record, they got a raise to stay without even asking. So they were in a good position to watch from the best of what the trucking industry could offer. Their contention after observing from inside the industry for a number of years is that the bulk of the US logistics industry is the train companies' to lose.
Placing enough sensors along the tracks and looking outward to the sides of tracks to detect conditions requiring trains to slow down way ahead of time, but otherwise clearing trains to run at much higher speeds than they are allowed to now, would go a long ways to fixing many of the train industry's delivery speed. Upgrade the tracks themselves and the rolling stock to boost the speed even more to match trucking's coast-to-coast delivery time, and there isn't much incentive to use trucks for those corridors rail serves.
Re: Bogle Sounds a Warning on Index Funds
#220Earlier quoted context omitted.
I’ve read your other comments in this thread and I mostly follow and agree. I’m getting lost on this one though. How does this monopoly(?) on the 500 work? Aren’t I able to go out tomorrow and buy the different input securities of an index, and market that as “jkulubya’s awesome fund wink wink”? (Easier said than done) One wrinkle I see with this scheme is that I probably have to publish my own index value because yo…
Think of the 500 (or any index strategy) as being like a story and the methodology is like the book that tells the story. You can't rip off our story and write your own book that essentially plagiarizes the 500 and claim it as your own. If you were to, for example, write a story about a rich kid who's parents were murdered and when he grew up he became a vigilante who wore a disguise to conceal his identity and worke…