Whenever you invest in shares of a company, think that you are buying a business, not a stock. Graham and Warren Buffet, two great investors, emphasize that there is no difference between buying a business and shares in a business.
When you buy a share of a company, you become an owner. However, you’re a silent owner. So you need to make sure that you’re comfortable with what the business does, how it operates, how it makes money, and understand how the management makes decisions.
So, keep in mind that below every share of stock is a company that should be making money!
If you want to learn more, check out these articles:
Be sure to check out the rest of our Daily Investing Tips.
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