If you own shares of McDonald's, Johnson & Johnson, an S&P 500 index fund, or any other countless security, when you glance over your reports, you should know exactly why you own them — how much you expect earnings per share to rise over the next decade, management's capital allocation policies (dividends
vs. share repurchases vs. debt reduction vs. acquisitions, vs. growing organically), as well a legal and economic trends that might affect your position.