A TRICKY question…be honest and be prepared to defend your position. There is not universal agreement out there on this question. Many successful investors (including Warren) say that you are an owner in the business. But many OTHERS including Strong and American Century believe you buy stocks…not companies. Momentum shops will definitely tell you that you buy stock. Growth and value ANALYSTS and firms MAY say either. Firms with a short term focus will probably say you buy stock, while firms with a longer term focus will likely say you buy companies.

A tricky question…be honest and be prepared to defend your position. There is not universal agreement out there on this question. Many successful investors (including Warren) say that you are an owner in the business. But many others including Strong and American Century believe you buy stocks…not companies. Momentum shops will definitely tell you that you buy stock. Growth and value analysts and firms may say either. Firms with a short term focus will probably say you buy stock, while firms with a longer term focus will likely say you buy companies.