Indexing and the Rise of a New Nifty 50

In this recent Barron’s article titled “Indexing and the Rise of a New Nifty 50”, Frederick “Shad” Rowe of Dallas-based Greenbrier Partners Capital Management discusses some of the opportunities that indexing creates for active managers. He argues that as indexing continues to rise in popularity, the valuation spread between high quality companies and mediocre companies will continue to narrow. This phenomenon should present opportunities for low cost stockpickers to make attractive investments in high quality companies for the long term.
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Article: Indexing and the Rise of a New Nifty 50 – Barron’s