Since its inception in 1889 as a Hanafuda playing card manufacturer, Nintendo (NTDOY:OTC US) has become a powerhouse in the consumer electronics and video game industries, so you may be wondering how to buy Nintendo stock.
The Kyoto-based tech giant developed into a video game company in the 1970s and ultimately became well-known because of NES, Nintendo 63, Nintendo Wii (and don’t forget Mario, Pokémon, and The Legend of Zelda).
How to Buy Nintendo Stock:
- Pick a broker to invest with. If you don’t have a brokerage account, you will need to get one to invest in Nintendo.
- Determine amount and risk. Based on your risk tolerance, decide how much money you want to invest.
- Place your order. Once you have set your investing goals, make your purchase of Nintendo stock following your broker’s rules.
Nintendo at a Glance
Nintendo is also recognized in pop culture through characters which stretch beyond video games: playing cards, animated series and mobile apps complete its universe. Its dedicated fan base and the production of video game consoles raises Nintendo to the top of the gaming world. Since Nintendo’s founding, the company has:
- Released Donkey Kong in 1981.
- Launched the Nintendo Entertainment System (NES) along with Super Mario Bros. in 1985.
- Debuted the Nintendo 64 in 1996.
- Introduced the Game Boy Advance and GameCube in 2001.
- Released the incredibly successful Nintendo Wii in 2006.
- Launched its most recent gaming console, the Nintendo Switch, in 2017.
History of Nintendo Stock
Nintendo’s stock has weathered a series of ups and downs since it began trading several decades ago. While many of Nintendo’s video game consoles over the years have been successful, many have also been disappointments, which have led to stock prices’ consistent rises and falls.
For example, if you had purchased Nintendo stock at the beginning of 2006 and sold one year later, you would be left with $4.60 for every dollar that you invested after the release of the Nintendo Wii shot NTDOY prices up to all-time highs. Meanwhile, if you had waited a few years longer, you might have been lucky to break as Nintendo stock plummeted.
Should You Purchase Nintendo Stock?
Pros of purchasing Nintendo stock:
- The release of the Nintendo Switch has been successful and bodes well for the future of the company.
- The Nintendo 3DS, released in 2012, continues to sell an impressive amount of units with over 7 million sold in 2017.
- With the success of Pokémon Go and Super Mario Run, Nintendo plans to continue targeting the mobile gaming market.
Cons of purchasing Nintendo stock:
- While Nintendo seems to be headed in the right direction, its long history of hits and misses could make it a risky investment.
- Because Nintendo is headquartered in Japan, its stock is only available on the Tokyo and Osaka exchanges.
- Nintendo’s early endeavors in the mobile gaming market have been promising; however, its mobile efforts are in the very early stages, making it hard to tell how much mobile gaming developments will contribute to the company’s growth.
How to Purchase Nintendo
Since Nintendo’s stock trades on the Tokyo and Osaka exchanges, U.S. investors may not understand how they can go about purchasing the company’s stock. If you’re interested, there are a few steps you can take to get your hands on Nintendo stock:
- Choose between NTDOY and NTDOF. NTDOY allows investors to more easily add and subtract their Nintendo shares as it only represents ⅛ of a share. Meanwhile, NTDOF is more expensive and requires investors to purchase or sell an entire share.
- Determine how much you want to invest. Based on the current value of Nintendo stock and the amount of money you are willing to invest, you need to determine how many shares you’re able to purchase.
- Find a broker. Find a broker that is licensed to trade on the Tokyo Stock Exchange. Generally, larger brokerage firms, such as Fidelity Investments, will be able to handle international investments.
- Place an order. Your stockbroker will take the information you have provided them and place the order for you.
For more information about buying stock, check out Benzinga’s Best Online Brokerage. Here are a few of our favorites:
Future Outlook for Nintendo
Though Nintendo has had a rocky history, it has always proven itself capable of rebounding and regaining consumer trust. If Nintendo continues to experience success with its gaming consoles and mobile gaming applications, then it’s likely that the company will continue to grow.
Investing in stocks based out of other countries provides a unique set of challenges. One of the most common ways to invest in stocks from other countries in the United States is through American Depository Receipts (ADR).
ADRs are certificates issued by U.S. banks which represent an investment in an underlying amount of shares for a company. ADRs trade like regular stocks, allowing investors to purchase shares indirectly in the company.
Additionally, it’s worth noting that investing in foreign companies carries currency risks. While ADRs are often denominated in U.S. dollars, the original stock will be in the home currency, in this case, Japanese yen. As such, the ADR or a direct investment in the shares of Nintendo for U.S. investor will carry currency risks.
Ready to start investing but don’t know where to start? Check out Benzinga’s top picks for the best online brokers for beginners.