In the oversaturated market of technical giants, Samsung has become one of the most recognizable names in the industry. It’s an incredibly influential corporation and one of the world’s largest manufacturers of electronic devices.
If you’re a beginner wondering how to buy Samsung stock, or even an experienced investor looking to expand your portfolio, you’re in the right place. We’ll explain how to buy Samsung stock in the USA and provide an analysis of the company that will help you decide if it’s the right choice for you.
About the Company
Samsung is a tech giant involved in a variety of industries such as trading, insurance, shipbuilding, and electronics. As an openly traded company, it’s primarily owned by its stockholders.
Despite being a South Korean corporation, Samsung manufactures only eight percent of all its devices in its home country. Some of the products, such as Samsung smartphones, are made in factories in several countries across the globe. However, this doesn’t affect the quality of its products, and Samsung stock value remains strong.
The company was founded as a grocery that sold noodles back in March 1, 1938, by Lee Byung-Chull. During the 1950s, it expanded into the textile industry. Samsung first started the electronics business in 1969, with black-and-white televisions being their first products. Nowadays, it’s best known for producing an extensive range of consumer and manufacturing electronics, including digital media appliances, semiconductors, memory chips, and integrated systems.
Should You Buy Samsung Stock?
That depends on the current state of the stock market as well as your personal preferences. Stock trading offers both opportunities and risks, and you should take the following into account before deciding whether to purchase Samsung shares:
- No one can guarantee you that the stock you bought won’t lose its value.
- When you focus on buying stocks of one company instead of diversifying your portfolio, you risk losing all your funds if the company suddenly loses ground.
- You should examine Samsung stock analysis, performance, and projections before committing.
- Online trading is convenient. However, not every online broker is legit. The unrealistically large or guaranteed returns are a red flag for possible scams.
Samsung stock performance
Samsung has a market capitalization of approximately $528 billion. In 2021, the company reached $300 billion in total assets, making it the most prominent South Korean corporation by a significant margin.
Samsung Electronics owns five significant companies: Harman International, SmartThings, LoopPay, TeleWorld Solutions, and Novaled.
According to GuruFocus, Samsung share price seems to be overvalued based on the fair price calculation at which the stock should be sold. The value depends on past multiples that the stock has traded at, previous earnings growth, and analyst estimates of projected business performance.
Samsung Electronics published financial results in July 2021. It reported KRW 61.55 trillion ($53.8 billion) in consolidated income and KRW 9.05 trillion ($7.6 billion) in operating profit. The revenue rose 26.4 percent from a year earlier due to memory chip businesses but fell 26.7 percent from the previous quarter due to decreased sales of smartphones and other gadgets.
As of August 20201, Samsung stock price is $44.200. The forecast predicts a long-term increase by 2026, when it’s expected to reach $285.339. That’s a 545.56% increase over five years.
Throughout the past 12 months, Samsung’s average Free Cash Flow per Share Earnings Growth Rate was 60.90% per year and 328.30% per year during the past three years.
In 2020, Samsung Electronics’ return on assets was 7.2%. For the period from December 2016 to December 2020, the return on assets was 10.3% and a median return on assets for the same period was 9.0%.
To become a more cautious investor, you should aim to put together a diverse portfolio that spans numerous sectors. The Samsung electronics stock could be one of them.
Portfolio diversification is important for minimizing risks while maximizing your potential returns. An ideal portfolio should consist of stock of 20–30 different companies and not more than 5% of any individual company. Before you add Samsung stock to your portfolio, make sure you know enough about the industry and the company itself.
How to buy Samsung stock
US exchanges like the Nasdaq and NYSE do not offer Samsung shares, making it harder for American investors to buy them the way they typically do. Therefore, prospective Samsung investors have to purchase personal shares of Samsung’s stock, either over-the-counter as a “pink sheet” stock or on the Korean Exchange (KRX). The first option means that you can make a purchase, but it isn’t regulated. The second option requires opening a South Korean brokerage account for you to buy a Samsung share in the USA. The third way is to buy them through an exchange-traded fund.
Online brokers/trading platforms
An online broker facilitates the online purchase of securities for a fee or commission. Online trading platforms are safe if you use a regulated online stock broker and invest only as much as you are willing to lose. A good start is to trade a small amount of money, keep up with the Samsung stock market performance, and read about smart investments.
However, buying Samsung stocks can be a bit more difficult since the company isn’t based in the USA.
If you’ve decided to invest in the Koran tech giant, you don’t necessarily have to worry about how to buy Samsung stock in the USA. It turns out that the easiest way to do it is to buy an ETF (exchange-traded fund) that invests in Korean companies, such as:
1. Shares MSCI South Korea ETF (EWY) — as a dominant player in the Korean economy, Samsung makes up nearly 25% of EWY’s total holdings
2. Xtrackers MSCI South Korea Hedged Equity Fund (DBKO)
3. Franklin FTSE South Korea ETF (FLKR)
An ETF is a bundle of securities that can be purchased via a broker. Like individual stock, ETF shares are sold throughout the day at prices that change based on supply and demand.
If you are still wondering how to buy Samsung stock, you should know that ETFs are usually less expensive than investing in actively managed funds and many individual shares because of the lower trading costs. They come with the flexibility of trading at any time during market hours.
Whether you are an expert or stockholder beginner, the company’s strong performance and market position in Korea makes buying Samsung stock an investment worth considering. If you’re an ambitious investor looking to diversify your portfolio, investing in Samsung might be an excellent choice for you. However, keep in mind that the key to a rich portfolio is to strategically increase your capital by not spending your money on the stocks of one company. This way, there is a lesser chance of losing all your funds.
Samsung went public in 1973. However, Samsung still has 59 unlisted and 19 listed companies on the Korean stock exchange.
SSNLF is an abbreviation used to identify publicly traded shares for Samsung in the US market.
The most reliable way is to open an account with an international stockbroker, which gives access to the Korean stock market.
Samsung has been around for a long time and has a diverse set of interests and subsidiaries. That means that its overall value will remain stable with a strong growth tendency. This is why, whenever it drops due to market fluctuations, investors start looking into how to buy Samsung stock, expecting it to bounce back in short order.