you may be willing to incur a loss of (say) 50% on the value of the bad egg in order to achieve a benefit of (say) 3% on all of the rest of the portfolio
Curiously, I saw the idea of “universal ownership” (without this name) mentioned in this post (courtesy of Scott Alexander’s March links) about how investments are super correlated lately and how diversified investment funds have a piece of each part of the whole economy. It’s the closest I’ve seen to computing “how much will x lose if this company drops 50%, but everyone else increases by 3%”. That would explain why BlackRock (and the financial sector, since TCFD’s creation) has been so responsible lately.
Btw, could you link the Symposium you mentioned in the text relating universal ownership and fiduciary duty?
Curiously, I saw the idea of “universal ownership” (without this name) mentioned in this post (courtesy of Scott Alexander’s March links) about how investments are super correlated lately and how diversified investment funds have a piece of each part of the whole economy. It’s the closest I’ve seen to computing “how much will x lose if this company drops 50%, but everyone else increases by 3%”.
That would explain why BlackRock (and the financial sector, since TCFD’s creation) has been so responsible lately.
Btw, could you link the Symposium you mentioned in the text relating universal ownership and fiduciary duty?