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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: BreckHutHigh ⎊  😊 😞
Number: of 21944 
Subject: Passive Investing Fuels Rise of Mega-Firm
Date: 06/27/25 10:20 AM
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Know this has been discussed on the board previously, still thought this was interesting.

"Passive Investing Is Fueling the Rise of Mega-Firms. That Could Affect Your Portfolio in Unexpected Ways
The surge in passive investing doesn’t just mirror the market—it shapes it, creating new risks and opportunities."
morningstar.com - Passive investing is fueling rise mega firms that could affect your portfolio unexpected ways

Research Paper Cited

"Paper Abstract
We study how passive investing affects asset prices. Flows into passive funds disproportion- ately raise the stock prices of the economy’s largest firms, and especially those large firms in high demand by noise traders. Because of this effect, the aggregate market can rise even when flows are entirely due to investors switching from active to passive strategies. Intuitively, passive flows increase the idiosyncratic risk of large firms in high demand, which discourages investors from correcting the flows’ effects on prices. Consistent with our theory, prices and idiosyncratic volatilities of the largest S&P500 firms rise the most following flows into that index."
personal.lse.ac.uk - PIRMF RFSf

More impetus for just investing in the MAG 7 and leaving the S&P Index for Buffett's wife and the "uneducated investor"?
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This community has written 21,448 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 57 recs · 2023
Summary of 2Q 2026 · 54 recs · 2026
3Q Summary · 53 recs · 2024
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