Elon Musk said a thing on Twitter recently:
Far too much power is concentrated in the hands of “shareholder services” companies like ISS and Glass Lewis, because so much of the market is passive/index funds, which outsource shareholder voting decisions to them. ISS and Glass Lewis effectively control the stock market.
OK, so I'm totally new and just learning about stonks. I like the stuff I've learned from Warren Buffet and Adam Robinson a lot, as well as from Jaspreet Singh's Minority Mindset youtube channel. This opinion and discussion on Twitter about passive/index funds has me taking notice because that's basically all I'm smart enough to invest in right now.
Outsourcing shareholder voting decisions to some higher authority sounds bad. I've never heard of that. Is this some sort of market manipulation leviathan lying in wait? You know, like everyone thinks it's great and goes along until suddenly it's a Madoff or FTX debacle?
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