Stocks are ownership in a business

Bull and Bear Market

Stock markets are off to a volatile start this year. Volatility is part of investing in markets, both domestic and abroad. One way to think about volatility is with Benjamin Graham’s fictional character, Mr. Market. Mr. Market was introduced in the 1949 book, The Intelligent Investor. Graham describes him as an investor who is ruled by emotions. Every day, he tells readers what their business interest is worth in the securities they own. Sometimes, this value is rational, and other times it is not. Mr. Market teaches that, although prices fluctuate, it is important to look at fundamentals rather than react to emotional responses.

Graham beats home the point that buying stock is buying ownership in a business. Think about this, and let it sink in. Ownership in a business.