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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Sun Tzu who wrote (5310)	5/25/1999 8:36:00 AM
From: Boca_PETE	Read Replies (1) \| Respond to of 15132

Sun Tzu: re:< I heard, most recently individual trades make up 70% of the trades > The source of my assertion that institutions make up approximately 90% of trading is from page 4 of the book "Winning The Loser's Game" by Charles D. Ellis (3rd Edition published 1998). This is one of the recommended books at the bobbrinker.com website. In the second to last paragraph on that page, Ellis asserts: "In just 30 years, the market activities of the institutions shifted from only 10% of total public transactions to an overwhelming 90%. And that shift has made all the difference. No longer was the active investment manager competing with cautious custodians or amateurs who were out of touch with the market: Now he or she was competing with other experts." ..."includes a formidable group of competitors. At least 200 major institutions and another 1000 small and medium sized institutions operate in the market all day, every day, in the most intensely competitive way. The 50 largest, most active institutions do 50% of all the trades in the market." Can you explain how and why this could have changed so much since the book was published. Or is Mr. Ellis just wrong, and if so, based on what? Mr. Ellis makes the case brilliantly for investing in low cost index funds. P