Many investors forget that stocks are
fractional ownership of a business.
Not exact matches
Once in office, Trump appointed the most disproportionately enplaned administration in history: According to Forbes, Treasury Secretary Steven Mnuchin has a Dassault Falcon; Linda McMahon, the Small
Business Administration administrator, has a Bombardier Global; Education Secretary Betsy DeVos and her family maintain a fleet
of 12 private jets, including a Boeing and six Gulfstreams, as well as four helicopters; Gary Cohn, the chairman
of the National Economic Council, and Commerce Secretary Wilbur Ross each retain private - jet shares in a
fractional -
ownership arrangement.
Buying a share
of stock entitles the investor to a
fractional share
of ownership of a
business.
While there is much that remains unknowable in financial markets, what we do know is that Graham's «big idea» — that a common stock represents a
fractional ownership interest in a
business and that the essence
of investment is to attempt to exploit discrepancies between the intrinsic value
of a
business and its price in publicly traded markets — has empirically and practically worked over the long term.
To investors stocks represent
fractional ownership of underlying
businesses and bonds are loans to those
businesses.
Why would it be any different in with
fractional ownership of a larger
business?
Fractional ownership (stock
ownership)
of a
business is no different.
My valuation experience includes the valuation
of fractional ownership interests and privately owned
businesses including ESOPs and I have been engaged as an Expert Witness in the areas
of valuation
of closely held
businesses and
fractional interests in closely held
businesses.