Message Font: Serif | Sans-Serif
No. of Recommendations: 0
So, I just don't think being in the S&P 500 has anything to do with intrinsic value. It might help a company trade at its
intrinsic value, but I'm doubtful about that.

Given that indexing is quasi-passive (S&P does add and subtract from the index thereby "managing" it, but index fund managers do no fundamental research), the trend toward indexing could be argued as a trend away from the reflection of intrinsic value in market prices.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.