Don’t just own shares — share ownership

Are there five companies whose products or services you rely on daily? What top brands are essential to your family members? Here are some of the brands I and my extended family can’t live without:

• Apple — Most of us use iPhones on the Verizon network.

• Google — I search for answers using Chrome multiple times a day.

• Berkshire Hathaway — Holding company behind Geico, Duracell, Burlington Railroad, and See’s Candy.

• J.P. Morgan Chase — The primary bank and credit card provider for all of us.

• Proctor & Gamble — Known for products like Bounty, Gillette, and Head & Shoulders.

I’m sure our lists have some overlap, showing how these brands are integral to our daily lives.

Imagine owning a part of these successful businesses without the need for day-to-day involvement. By purchasing shares, you become a partial owner. Warren Buffett advocates for investing in what you know.

When you check your investment account, do you see a list of stocks or a collection of real companies you depend on daily? Visualize owning shares of the businesses that impact your life, not just abstract stock symbols.

Ask yourself: If the stock prices of these companies dropped significantly, would you cease using their products or services?

This mindset shift is crucial. Recognizing that you’re an owner of real companies, not just a speculator in stock tickers, changes your perspective. Stock prices may fluctuate based on emotions and news, but well-managed businesses continue to thrive.

Businesses hire, create, and innovate, while markets react to headlines and sentiments. The distinction between “stocks” and “businesses” is fundamental, emphasizing the importance of an ownership mentality.

During market fluctuations, remember that great companies maintain their value and serve their customers. A drop in stock prices doesn’t diminish a company’s long-term potential or impact on consumers.

Successful investors focus on good investment behavior rather than predicting market movements. Resisting emotional reactions and maintaining a long-term perspective are key to financial success.

Staying invested in quality companies that compound value over time is more beneficial than chasing high-growth stocks. Investing requires optimism and a belief in a brighter future despite market volatility.

Remind yourself that you’re a part-owner of businesses you understand and rely on, not just a holder of stocks. This shift in mindset can improve investment behavior and lead to long-term success.

Next time market volatility strikes, remain focused on your ownership of quality companies that create value and improve lives. Stay committed to your long-term investment strategy.

Steve Booren, founder of Prosperion Financial Advisors, is the author of “Blind Spots: The Mental Mistakes Investors Make” and “Intelligent Investing: Your Guide to a Growing Retirement Income.” Recognized as a Forbes 2024 Best-in-State Wealth Advisor and a Barron’s 2024 Top Advisor by State.