Indexers Paying Up Again

Berkshire Hathaway is up nearly 15% since the announcement that it was being added to the S&P 500. Using the conservative estimate that 11% of assets are indexed to the S&P 500, indexers as a group are paying a greater than $2 billion premium for shares of Berkshire Hathaway. For most indexing still makes sense, but there are hidden costs.

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