Tyler Cowen: belief

Transcript context

…Right. But again, trying to make sense of Keynes, if you think about long-term investing, and I don’t think he meant Buffett-style investing. I think he meant building factories, trying to figure out what people would want to buy 25 years from that point in time. That probably was much harder than today. You had way less access to data. Your ability to build an international supply chain was much weaker. Geopolitical turmoil at various points in time was much higher. So again, it’s not a crazy view. I think there’s a lot in Keynes that’s very much of his time, that he presents out of a kind of overconfidence as being general. And it’s not general. It may not even be true, but there were some reasons why you could believe it. Another quote from Keynes, I guess I won’t read the whole quote in full, but basically says, over time, as investments, markets get more mature, more and more of equities are held basically by passive investors, people who don’t have a direct hand in the involvement of the enterprise, and the share of the market that’s passive investment now is much bigger. Should we be worried about this?…

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