Investing in Samsung
When it comes to investing our income, it is very difficult to choose the one that gives us back more than what we invested. And maybe Samsung is a good choice when it comes to buying shares, but to know it is the right decision, we need to learn about the company.
For this purpose we have made an informative guide about Samsung and its shares. We will show you everything you need to know about investing in the Samsung company such as its advantages, disadvantages, and tips on this type of transaction. So, without further ado, let’s learn how to buy into Samsung.
What is Samsung?
It is a combination of several multinational companies headquartered in Seoul, South Korea. It began solely as an export-import company in 1938.
It is considered the largest South Korean business group, with many subsidiaries working in finance, insurance, technology, biotechnology and consumer electronics. Some of them are: Samsung C&T in the area of civil construction, it has an insurance company called Samsung Life Insurance, an advertising agency called Cheil Worldwide, among others.
The group is made up of more than 80 subsidiaries, the best known branch is called Samsung Electronics, which works in the area of technology and electronics. In 2009 this branch won the award as the world’s largest electronics company, thanks to the amount of revenue it acquired. The other subsidiary Samsung Heavy Industries became the second largest shipbuilder worldwide.
Before investing, it is advisable to analyze the reasons to buy Samsung shares on the stock market, so read on!
Samsung’s share price has had a fairly unchanged movement in recent years. So, if you want to buy a Samsung share, you can find it on the US Nasdaq All Markets at a little over 69 thousand KRW. They are included in the Nasdaq 100 stock index, Samsung’s Nasdaq ticket is listed under the acronym SSNLF.
This year, they have earned revenues that are 6.1% higher than last year’s third quarter at approximately $26 million. But in the second quarter it obtained 51% more than in 2019, this being the time when there was more impact from the pandemic around the world. It should be noted that all of this was calculated by smartphone sales alone.
Below, we bring you the pros and cons that influence the value of Samsung stock.
Buying Samsung shares: Advantages
- The company has a very long experience in the area: It has achieved a strong image in the market and is recognized worldwide.
- It works with a very effective marketing strategy: in addition to innovating, Samsung maintains its stocks thanks to its brilliant marketing strategies in which it promotes products that meet the needs of its consumers and facilitate their tasks.
- It has strong positioning in several of its subsidiaries: It is one of the largest manufacturers of smartphones and televisions, which helps its bargaining power to be strong.
- It has the ability to create strong ties with other technology companies: This allows the company to come up with better business models and further reduce the price to sell the products.
- It is keen to innovate more and more its product portfolio: The company is always investing money in research and development. This is not only in order to create more sophisticated products, but also to maintain market leadership over its competitors.
- The company has a large workforce: With around 400,000 employees worldwide, it can count on a large production and at the same time make many sales.
- The price of Samsung shares is affordable: Samsung shares trade at a price of KRW 73,300 ($0.067), a fairly low cost compared to companies such as Xiaomi or LG.
Buying Samsung shares: Disadvantages
- The company has strong competitors in the market: The emergence of competitors that offer excellent products at a lower price than those of this group limits the possibility of expansion within the market, which may also affect the stability of Samsung stocks and their price.
If you do not know how to invest in Samsung, you just need to consult a stock broker and search for the title with the name of the company. They work online trading in the different stock markets. Each one has different features, but here we are going to recommend one called eToro.
This platform is totally secure and gives you the opportunity to buy or sell shares without having to pay any commission. You can invest in two ways, one of them is on your own or using the Copy Trading investment method. The latter consists of copying the investment strategy of the person of your choice.
The broker has a part that shows the most successful investors of the last months, you can find them in the editor’s choice section. Now then, let’s explain how to buy a stock through eToro.
- Create an account with the data requested in the form and then you have to confirm your identity.
- Deposit the money with which you are going to invest, the minimum amount to operate is 200 euros or dollars.
- In the search bar enter Samsung and select the title.
- The screen will display all the information regarding the company, press the invert button.
- Now select the number of shares to buy, the amount to invest in Samsung shares and other necessary data.
- Finally, click on execute operation and you’re done!
- If you use Copy Trading it is of utmost importance that you first identify which trader has obtained the most income and has a low loss rate. So that you can enjoy the same success that the chosen person has obtained in the securities bought or sold.
- Plan a budget: Start trading the stock market with little money, it is recommended that you take into account the amount you can afford to lose. After earning income you can consider investing for a longer period of time or in other stocks.