EPISODE 01 · OWNERSHIP
What do you really own when you buy a share?
Not a lottery ticket. Not just a price moving on a screen. You own a small part of a real business.
Future profits
You participate in the economic value the company may create over time.
Assets and debt
Your ownership comes with a proportional claim on the business — including its obligations.
A vote
Depending on the share class, you may have a say in important corporate decisions.
Value creation
Your return ultimately depends on the business becoming more valuable and on the price you paid.
A SIMPLE EXAMPLE
10 shares out of 1,000
You own 1% of the company. If the business grows and becomes more valuable, your stake may become more valuable too. If the business deteriorates, the opposite can happen.
THE BEGINNER'S MISTAKE
Watching only the price.
“The share went up.”
“The share went down.”
“Should I buy today?”
THE OWNER'S VIEW
Understanding the business.
How does it make money? What protects it from competitors? Is the balance sheet sound? Is the price reasonable?
THE MITUXA RULE
Before asking whether a share will rise, ask:
“What business am I becoming an owner of?”