As you’ve seen in this table, the amount of money in the Vanguard Total Stock Market Index family is enormous. It’s where money goes to die, and is perhaps one of the greatest bubbles no one sees.
You have advisors recommending this index approach until they’re blue in the face. They give presentations to the investment committee of pensions, foundations, LLCs, hedge funds, you name it, and say, “Well Bob, with this fund, you have a slice of the stock market.” A good follow-up question is how much of the total is dependent on just ten stocks?
Action Line: Lots of careers are made recommending indexes. There’s a lot of hidden value in what career-minded managers don’t buy. Sometimes it’s better to stay away from crowds.
E.J. Smith - Your Survival Guy
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