Chapter 9

Traditional Investments

A concise guide to traditional asset classes

‘Price is what you pay. Value is what you get.’

Warren Buffett

Most investments in your portfolio are likely to be traditional investments. The main traditional asset classes include:

  1. Equities.
  2. Fixed income.
  3. Cash.

They are likely to make up the lion’s share of your portfolio. In this chapter we focus on their characteristics and roles in portfolios.


Equities (shares, stocks) represent partial ownership in the company issuing them. When you own a stock you are the proud owner of part of a business. Through stocks you participate in the business’ growth prospects.

Companies primarily raise capital through issuing either shares (ownership, capital, equity) ...

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