CHAPTER 2

Why Stocks?

Most value investors focus on stocks. Stocks are also called shares or equity.

Most value investors favor public company stocks specifically. These shares trade on exchanges. They’re listed.

Listed stocks constitute an asset class. They’re a group of securities whose prices tend to move together in response to events.

There are plenty of asset classes besides listed stocks. Bonds, for example. Bonds are debt. While stocks are business ownership interests, bonds are IOUs. Bonds can be issued by countries, cities, and corporations of all sizes.

There are other asset classes as well: currencies, like the euro and the Australian dollar; commodities like corn and silver; and stocks in privately held companies, like start-ups. ...

Get Good Stocks Cheap: Value Investing with Confidence for a Lifetime of Stock Market Outperformance now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.