Scott Francis has been quoted in a recent article written by Shant Fabricatorian for Alan Kohler's Eureka Report - Investors warm to index funds. (A copy of the article can be found in the Eureka Report articles section of our website.)
Scott was quoted as saying:
"He argues that index funds harness the relative pricing efficiency of the market, so at least in theory, future prospects are already "built-in" to your buy-in price. "You can think of each [share] price as a very sophisticated research instrument that takes into account, and reflects, all the information known about that stock," he says. "And the reality is that no individual company is that big in the overall index, so [a poor company] doesn't have that big an effect on your overall investment."