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Your Mutual Fund is basically a monopoly in disguise?
#1
I read an interesting article on Slate:

Basically Mutual Funds and institutional investors create monopoly like conditions similar to the trusts of old.

Mutual funds make air travel more expensive: Institutional investors reduce competition.
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#2
From the article, "As they point out, the investment management company BlackRock is the top shareholder of the three largest banks in the United States; BlackRock is also the largest shareholder of Apple and Microsoft. The companies that are the top five shareholders of CVS are also the top five shareholders of Walgreens. (And yes, one of them is BlackRock.) Institutional investors dominate the economy."

I think it is good idea to own the shares of BlackRock ( BLK). Big Grin The stock is doing very well. If you can't beat them, join them! Thanks for the tip, Prloko!Smile
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#3
My concern with mutual funds - and I use them for my IRAs, etc., - is that they don't take a stand. If I directly owned stock in XYZ Corp., and they wanted to pay outlandish salaries to the upper management, you'd bet your bottom dollar that I'd be voting that board out quickly. I don't think mutual funds operate that way. (In fact, I often wonder if their isn't an incestuous relationship between the funds and the corporations in which they buy stock. For instance, I work for Goldblock Mutual Fund and I'm the expert in... widgets. What's to stop me from leaving Goldblock, and taking a job with a widget company? What's to stop me from encouraging Goldblock to buy stock in my future employer before I leave?)

It would be interesting to see if there's any correlation between the increase of mutual fund ownership by the average American, and the increase in salaries at the executive level.
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#4
I am a cranky bear. All of my annuity is in guaranteed income fund making just enough to beat inflation.
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