How to buy Sainsbury’s shares (SBRY)

By:

James Knight

James is a lead editor for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets. His ... read more.

Updated: Jul 6, 2023

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This guide will explore a brief history of J Sainsbury’s, the company’s recent market performance, the latest Sainsbury’s news, and the key things you need to understand about the stock market.

Compare the best Sainsbury’s trading platforms

If you have all the information you need and just want to invest, you can get J Sainsbury’s shares immediately by visiting one of our trusted brokers below. We’ve assessed all the best brokers and compared them so that making the right choice for you is quick and easy.

If you’re not ready to invest yet, keep reading for more information on Sainsbury’s.

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How to buy J Sainsbury’s stock, a step-by-step guide

Making your first investment is a simple process, even if you’re new to the stock market. The following list explains how to do it in five easy steps.

1. Choose a broker. The first thing you need is an online brokerage platform. There are many different options to choose from, each with their own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure.
2. Create an account. Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally, you can expect to have to provide your name, email address, phone number, and some form of photo identification.
3. Deposit funds. Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of money you wish to invest in Sainsbury’s shares.
4. Place an order for SBRY stock. Search for the Sainsbury’s ticker symbol (SBRY) and see the current price at which the stock is trading. If you’re happy with the price, enter the amount of shares you wish to own and place your order.
5. Execute your order. Once you have placed your order, your broker will automatically execute it for you and your Sainsbury’s shares will be listed in your account. Congratulations, you’ve just bought shares in Sainsbury’s!

What is Sainsbury’s? And should I invest?

Sainsbury’s (LON: SBRY) is a British supermarket chain. It is the second largest chain, behind Tesco, in the UK and owns about 16% market share. In recent years, Sainsbury’s has battled Asda for that second place spot and the two chains were in talks to merge until it was blocked by the competition authorities in 2019.

The grocery side of the Sainsbury’s business offers a reliable chunk of a pie that will always be there but tracking its actions in other markets might give pointers as to the overall health and long term performance potential of the company. Sainsbury’s might look to offload its banking arm, having already stopped offering mortgages. 

Groceries have been reliable investments in the past. Similarly, Sainsbury’s price can provide opportunities for more technical investors to benefit from short term trends. If this aligns with your investment goals, you can keep reading to find out more about Sainsbury’s position and recent past.

How has the company performed in recent years?

Sainsbury’s has been in a tough spot for a few years, with stiff competition in the supermarket space keeping its value flat since 2014. There has been some more positive news over that time, but the overall trend has been a slow fall and it’s looking for ways to reverse that slide moving forward.

Sainsbury’s problem has been a lack of differentiator between itself and the competition. It is under pressure in both directions, from low-cost chains like Aldi and Lidl as well as more upmarket competitors like Waitrose and the resurgent online grocer Ocado. In 2016 it bought the Home Retail Group, which included Argos as its main prize, and the opportunity to offer a wider range of products as well as make its online operation more efficient.

It hasn’t been able to translate that acquisition into positive news for its share price as yet. One move that briefly did was news of a potential merger with Asda that sent Sainsbury’s price soaring. It jumped 30% to above 300p in May 2018 but it was a relatively short lived bounce, as news of the industry regulator blocking the move dropped the price all the way back to its trend line the following year. 

Is it a good time to buy Sainsbury shares now?

Sainsbury’s owns a significant market share and is a reliable dividend stock, which makes it a safe investment if your goals are based around reliable returns. If your goals are more aligned to wanting long term growth then Sainsbury’s cost-cutting measures are important factors when deciding if that looks likely.

The pandemic gave supermarkets a short-term boost in demand but the challenge is whether bigger names like Sainsbury’s can translate that to long-term performance. It is incorporating all Argos stores into existing Sainsbury locations to cut costs and better meet customer demand. Both Sainsbury’s and Argos are up against stiff competition that forces them to offer low prices at thin margins, but Argos especially could be a drag on profitability longer term as it is forced to try to compete with Amazon for share of the online merchandise market.

Before investing you also should consider your goals as an investor. You might want to explore the competitive landscape and carry out fundamental analysis on Sainsbury’s performance. You can keep up to date with all the latest news and analysis below. We regularly publish analysis about particular stocks and markets to help our users find the best opportunities. You can find our most recent bits of market analysis below.

Buying, selling and trading J Sainsbury’s shares for beginners

What to do before buying shares

You should always take the time to research a stock fully before investing your money, especially if you haven’t bought shares before. The more knowledge you have, the better your chances of making a wise investment. 

With that in mind, here’s a checklist to run through before you put any money on the line.

1. Research the company. You should always examine the fundamentals of a company. What is Sainsbury’s? How did the company get its start? How did it grow? Is Sainsbury’s revenue and profit growth picking up? Is the company innovating? The more you know about Sainsbury’s, the better positioned you’ll be to make smart investment decisions.
2. Make sure you understand the basics of stock investing. Before getting involved in stock market investment, make sure you have an understanding of how it works. This will ensure that you have more clearly defined goals and have thought through how you will achieve them.
3. Decide between share dealing and CFD trading. Choose the type of investment strategy you want to pursue, and make sure you have carried out the necessary fundamental or technical analysis for share dealing and CFD trading respectively.
4. Set the size of your budget. The golden rule of investing is never to risk more than you can afford to lose. Not every investment you make will result in a profit, so it is important to set a budget that not only allows good potential for capital growth, but also protects against overly damaging losses.
5. Find the right broker. Individual brokers each have their own pros and cons. Some will have low fees but have a user interface you struggle to understand, whereas others may be a bit more expensive but come with a range of features that you want to take advantage of. Our exclusive broker reviews can help you find the right platform for you.
6. Examine broader market conditions. No stock exists in a vacuum, and it’s always important to analyse the general trends of the stock market as a whole before investing. If a bear market is setting in and stock prices are falling, it’s best to wait it out and invest your money later when the stock is cheaper. If, however, the market is looking bearish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. The news segment of our website can help you keep on top of movements in the financial markets.

What is the difference between buying, selling, and trading shares?

If you’re new to stock investing, then it’s important to understand the basics of how to buy, sell, and trade Sainsbury’s shares. Here’s a quick run-through of what’s involved in each.

Buying Sainsbury’s

This process involves finding a broker and placing an order for Sainsbury’s stock, as outlined in the steps further up this page. Ideally you want to time your investment when the stock’s price is low so that you can profit by selling the shares after they increase in value.

Selling Sainsbury’s

When you sell any Sainsbury’s shares, you’ll want to do so at a higher price than the one at which you bought to earn a profit. 

When you sell is up to you. You might decide to hold shares for a while, hoping to benefit from the company growing steadily throughout. Or, if you see that Sainsbury’s stock is already up a lot compared to the price you bought it and you’ve noticed that the stock market is starting to fall, it might make sense to sell and take your profits to invest elsewhere. Equally, if the stock has fallen since you bought it and looks set to fall further, it might be a good idea to cut your losses by selling your shares.

Trading Sainsbury’s

Trading is the same process, it’s just done over shorter periods of time with the aim to make small profits on a regular basis. This means that you can make money faster and spend your profits in your day-to-day life – however, on the other side it means you can lose money faster as well. For inexperienced investors, we generally recommend making investments for at least 6 months to a year instead of making trades in quick succession.

You can trade Sainsbury’s shares through buying and selling shares, or by trading with CFDs. These allow investors to speculate on stock prices and trade with leverage in pursuit of bigger gains. CFDs trading is explained further in the next section, but it is worth noting that beginners should avoid trading with leverage. It comes with large risks and is best left to experienced investors.

Share dealing vs CFD trading

When it comes to investing in any stock, the two options you have are share dealing and trading. Which one of these methods to opt for largely depends on your investment timeline, with investors thinking long term tending to go for share dealing, and those looking for short term gains pursuing a more aggressive trading strategy.

Here’s a quick summary of the two approaches, and the pros and cons of each.

Share dealing 

Share dealing refers to the practice of holding shares in a particular company over the long term. When investing like this, you’re seeking to profit either from dividend payments or an increase in the stock’s price over time.

When investing your money this way, it is important to do thorough fundamental analysis of the company in which you are investing. You want to put your money in a stock you believe will trend upwards over time, even if there is some market volatility along the way, rather than get distracted by shorter-term peaks and troughs.

Pros

• Can build wealth over time to achieve financial goals
• Don’t need to be very reactive to short-term market movements
• Some stocks will give you an income through regular dividend payments

Cons

• Takes a long time to realise any profits
• Your capital is tied up in stocks and cannot be used for other investments

CFD Trading 

If your aim is to generate profits in the short term, then you might be better off trading shares than holding them in your portfolio. Stock trades like this are executed using CFDs (contracts for difference), which allow investors to trade against the value of a stock without having to take ownership of it. When CFD trading, investors are looking to buy and sell stocks fast to profit from short-term fluctuations in value.

One aspect of CFD trading that many investors find attractive is that they allow you to trade with leverage. This means you can place large trades while only putting up a fraction of the value yourself – for instance, if a platform offered leverage of 1:10, you could put £10 into SBRY shares and be able to trade £100 worth. This can maximise profits if the market moves in your favour, but be careful as it can also lead to heavy losses.

When trading using CFDs, it is key to be skilled at technical analysis and reading stock price charts. As you’re trading stocks quickly and frequently, the fundamental strength of the company in which you’re investing isn’t as important as being able to predict how its stock price will rise and fall minute-by-minute.

Pros

• Can generate fast profits if you read the market right 
• Some platforms allow you to trade with leverage
• Prevents your capital being tied up so you can take advantage of investment opportunities

Cons

• Trading with leverage is risky and can lead to big losses
• Doesn’t necessarily generate growth over the long term

Consider which approach suits you best and craft an investment strategy that works for you. If you need more information, then simply take our stock trading course and read our guide to CFD trading to get you up to speed. 

If neither of these options appeal to you, then you can find a variety of other ways to invest in SBRY stock on this page. If, however, you’re ready to buy Sainsbury’s shares now, simply select one of the brokers in the table above and get started. 

How to choose a broker

With the wide variety of online brokers available these days, it can be hard to figure out which is the best service to go with. Our comparison table and in-depth reviews can help you cut through the noise, but by and large these are the aspects you should be considering when selecting a broker:

• Range of stocks available. The most important thing is to check that you can find the shares you’re looking for. Some brokers offer more stocks than others, and many will allow you to trade other assets, such as forex and commodities.
• Fees and commissions. You want to keep as large a chunk of your profits as you can, so it’s important to make sure your broker doesn’t charge high fees that can eat into your profits.
• Regulation. You should only use regulated brokers to place trades. Unregulated brokers can be risky and offer little to no protection if the business were to fail while you had funds in your account.
• Payment methods available. You might want to fund your broker account with a particular payment method, such as PayPal. Not all brokers accept every payment method, but using our comparisons you can search only the brokers that support the option you’re looking for.
• Reputation. One of the strongest indicators of a broker’s reliability is the reputation it has with the customers who have used it. Brokers are online businesses, and as such many user experiences can be found online. You can check these out in addition to our reviews to make sure you choose the right platform.
• Customer service. As you’re going to be investing your money using the platform, you want to check that the broker offers good customer service in case you have a query or something goes wrong.