This resonates. The most interesting line for me is that flows used to be background noise and now they are a primary driver of returns. In quant terms, fundamentals may still win long term, but the path dependency has become much harsher because passive and momentum flows can keep small and mid caps mispriced longer…more

Thanks for sharing ! It perfectly explains why stock pickers are struggling so much these days. It’s frustrating to see good small-cap companies get punished just because of passive fund flows. However, when the pendulum swings back, the gains will be huge for those who wait. It’s a great reminder to stay disciplined…more

This resonates deeply. The invisible-lines problem actually shows up in SEC 13F filings in a surprisingly readable way, once you know what to look for.

Berkshire Hathaway's Q4 2025 13F is a good example. The headline is Buffett — but buried in the portfolio is a new NYT position worth ~$352M at 0.13% portfolio…more

As always a great thought piece