Buy Samsung stock by opening a brokerage account, researching the company's performance and placing a buy order through the stock exchange.
Known across the world, Samsung is one of the world’s largest industrial technology companies based out of South Korea. They sell electronics - anything from televisions and household appliances to mobile devices, with the Galaxy S24 Ultra at the forefront of the company’s marketing efforts.
Founded in 1938, the company grew to encompass multiple divisions from electronics, heavy industries, engineering and C&T. Additionally, the Samsung Electronics holds several other subsidiaries including life insurance and theme parks.
Samsung at a Glance
Today, people mainly know Samsung for their home appliances, televisions, and mobile devices including the Galaxy line, especially the Galaxy S24.
Many people remember the company making headlines with their Galaxy phone battery defects that caused fires and were eventually banned from most commercial flights. Despite a few setbacks along the way, the company has grown to be a global powerhouse in the consumer and business electronics industries.
Today the company leads the way in new technologies from flexible smartphones, artificial intelligence, to virtual reality and mobile payment. Samsung has gone through some interesting changes and events over the years:
- 1980: Merged with Samsung Semiconductor
- 1989: Produced a record 20 million color televisions
- 1991: Created their first mobile phone handset
- 2000: Hit 100 million cumulative sales of color televisions
- 2008: Established TV manufacturing in Russia
- 2017: Acquired HARMAN and debuted the world’s first Cinema LED screen
History of Samsung and Samsung Stock
Though Samsung itself has been publicly available for many decades - since 1973. The company had 59 unlisted and 19 listed companies on the Korean stock exchange.
In fact, if you had purchased the main Samsung stock listed under number 005930 in August 2014, you would have been rewarded with around 300% return excluding dividends. Here's what Samsung's price history looks like as of August 2024.
Future Outlook for Samsung’s Stock
Samsung has been around for a long time and will likely be around for much longer. The company continues to reinvest in its future in order to maintain its market dominance at the forefront of technology.
If at any point the company becomes the first entrant into a particular technology sector of a market, and holds patent protection against competitors, they will likely see additional growth that isn’t currently accounted for in the stock price.
The firm’s operating profit may fluctuate, especially as the chip business shifts under the weight of demand from the auto industry. As a tech stock that could provide you with quite a lot of diversity, you must judge for yourself if the stock will continue to grow.
Moreover, the chipmaker is more expensive than many people realize, with home appliances and other household items on the market. As a result, Wall Street can easily influence this stock, meaning that you must keep abreast of current events when holding this asset.
How to Buy Samsung Stock
To purchase shares of Samsung stock, you just need to follow these instructions.
Step 1: Decide How Much You’d Like to Invest
Determining how much you want to invest in Samsung involves not only deciding the amount you wish to invest but also converting it into the local currency and accounting for any additional costs associated with the transaction.
Keep in mind that because the stock trades in Korean Won, there is additional currency risk associated with owning the stock.
Step 2: Find a Suitable Broker
To purchase shares of Samsung, investors outside of Korea must find brokers that are authorized to transact on the local exchanges.
Typically, orders will be done over the phone, in person or through email as opposed to online. Check out Benzinga's favorite online brokers on our best online brokerages page.
Step 3: Purchase Samsung
Once you’ve found an appropriate broker and determined the number of shares you wish to purchase, you will likely have to have your broker purchase the shares for you.
An alternative to purchasing the shares directly is to invest in an ETF that has heavy exposure towards Samsung. It’s also important to note that Samsung has multiple divisions that are publicly traded on the Korean Stock Exchange. In purchasing stock, investors will need to decide which of these divisions they wish to own.
Why Should You Buy Samsung Stock?
Investing in stocks can help grow your wealth. Samsung stands out as a strong choice. It leads in technology and consumer electronics and has a solid reputation for innovation and quality. The company offers a variety of products, including smartphones, semiconductors, and home appliances. Samsung can benefit from ongoing technology advancements and consumer demand. Its financial performance, focus on research and development, and push into emerging markets make it even more appealing. In the following sections, we will discuss why buying Samsung stock could be a smart move for investors looking to diversify their portfolios and tap into future growth.
Strong Market Position
Samsung is a major player in several sectors. These include smartphones, semiconductors, and consumer electronics. The company offers a diverse range of products, from advanced mobile devices to high-performance chips. Samsung has strong brand recognition and customer loyalty. This solid market position helps the company stay competitive in a fast-changing industry. As the global market evolves, Samsung's ability to adapt and innovate further strengthens its reputation as a reliable investment.
Robust Financial Performance
Samsung has a strong financial performance record. It has shown consistent revenue growth and solid profitability. This success is mainly due to its semiconductor and mobile divisions. The company has remained stable during economic downturns. It maintains strong cash flows and a solid balance sheet. Samsung is effective in cost management and strategic investments. This financial stability makes it attractive to investors. It is seen as a low-risk option that can handle economic challenges while still providing growth opportunities.
Investment in Innovation
Samsung invests significantly in research and development. The company focuses on next-generation technologies like 5G, artificial intelligence, and renewable energy. These areas are expected to drive growth in the coming years. By prioritizing innovation, Samsung improves its existing products and prepares for future market opportunities. This strategy helps the company stay relevant in a competitive market. It makes Samsung an appealing option for investors interested in emerging technology trends.
Considerations Before Buying Samsung Stock
Investing in Samsung stock can be appealing. It is a global technology leader known for innovation. However, investors should evaluate several factors before investing. Understanding the company's financial health and market performance is important. External factors such as geopolitical issues, industry trends, and regulations also matter. Assessing personal investment goals and risk tolerance is crucial. Considering the broader economic environment will help in making informed decisions. By carefully weighing these factors, investors can better prepare before buying Samsung stock.
Market Volatility
The technology sector is known for its high volatility. This is especially true in the semiconductor and consumer electronics industries. Rapid changes in consumer preferences and global supply chain disruptions can cause significant fluctuations in stock prices. Investors must understand the risks associated with these market dynamics. Analyzing historical performance and market trends can help. External economic factors also provide insights. This analysis can indicate how Samsung's stock might react during unstable periods. Being aware of potential volatility can help investors manage expectations and develop strategies to mitigate risk.
Global Competition
Samsung operates in a competitive environment. It faces challenges from established tech companies like Apple and Huawei, as well as new entrants in various markets. This competition can impact Samsung's market share and profit margins. These factors influence the company's overall performance. It is important to watch how Samsung sets itself apart through innovation, pricing strategies, and marketing efforts. Understanding the competitive landscape offers insights into potential challenges and opportunities. This knowledge can help investors make informed decisions about investing in Samsung.
Regulatory Risks
Samsung operates as a global corporation. It faces many regulatory environments that differ by region. Geopolitical tensions and shifting trade policies create uncertainty and affect the company’s operations. Intellectual property rights and compliance with international regulations are also important. Investors must stay informed about regulatory developments and their effects on Samsung’s business strategy and financial performance. By being aware of these risks, investors can better understand how external factors might influence Samsung's market position and long-term growth.
Is Samsung Stock Right for You?
When thinking about whether Samsung stock is a good investment, it's important to look at various factors. Samsung's presence in different markets, including consumer electronics, semiconductors, and telecommunications, can help reduce risk by not relying too much on one sector. This diversification may protect investors from market fluctuations and economic downturns.
U.S. investors might face difficulties because Samsung stock mainly trades on the Korean exchange, which can limit trading options and affect liquidity and accessibility for buying or selling shares quickly. Nevertheless, Samsung has shown strong performance, consistently generating solid revenue and demonstrating innovation.
For investors seeking ease, ETFs can be a good option. Choosing ETFs that include Samsung stock can offer better access and diversification, making the investment process simpler while still benefiting from Samsung's potential growth. Ultimately, U.S. investors should consider the risks associated with the investment alongside the benefits of Samsung's market position before determining if it suits their portfolio.
Frequently Asked Questions
How can you buy Samsung stock?
To buy Samsung stock, choose a brokerage that offers access to international stocks, open an account, and fund it. Then, look up Samsung’s stock ticker and place your order.
Is it good to invest in Samsung?
Investing in Samsung can be attractive due to its strong market position, robust financial performance, and commitment to innovation. However, consider factors like market volatility, competition, and regulatory risks before making a decision.
Who is more profitable, Apple or Samsung?
Apple is generally more profitable than Samsung, with higher profit margins and net income. Its stock has also shown greater growth over time compared to Samsung’s.