The Elegance of Indexing

Stocks, or “equities,” as they are also called, are shares of ownership in companies and are the foundation of investing. All companies are motivated to grow, and stock ownership is the opportunity for individuals to participate in that growth.

Other types of investments certainly provide their own benefits, but they may not be solely oriented toward increasing in value. For example, you might invest in bonds to lend stability and income to your portfolio; or in real estate, in order to earn rent or have a tangible asset. Only companies are built to grow.