Mike Green on how passive investing is distorting capital allocation

That is actually a very important role: taking money from bad companies and giving it to good companies is a critical role in the capitalist system, effectively allowing those who are efficient and intelligent allocators of capital, to give money to management teams that have good prospects in terms of generating future wealth.  What we've created now is a distortion that's a funhouse mirror effect, right?  Where we've presumed everyone is doing this for us where it is a fool's game to do it for ourselves.

~ Mike Green, "Why The Rise of Passive Investing Might Be Distorting The Market," Odd Lots podcast with Joe Weisenthal and Tracy Alloway, January 23, 2020