This sounds like a do-good kind of book about how activists can change the world. But it is actually much more down to earth. And it has a point that is very important to understand, especially as we make our way through and out (yes, we will eventually get out) of our current recession.
The authors assert that change will be driven by the significant shift in the ownership of public companies. They point out that as recently as 1970, the market was controlled by a small number of wealthy individuals. Small investors owned just 19% of stock. Today, more than 50% of the U.S. market and more than 70% of the UK market is controlled by institutions investing the money of regular people. This trend has been steady over the past few decades.
How will this change the markets? If you own diversified portfolios rather than individual stocks, the authors assert, you will have a greater interest in the health of the system. Does our current crash prove them wrong or show us the pattern that will emerge after we get through these tough times?
