How to buy Porsche shares
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This guide outlines the key details you need to know about the auto manufacturer and takes you through how to buy Porsche shares. Compare the best trading platforms and learn about how to invest in the stock market.
Compare the best platforms to invest in Porsche shares
Copy link to sectionIf you want to buy Porsche shares then you’ll need to use an online broker. The list below has a selection of some of the best places around to get your hands on its stock. Click on any of the links below to register an account and get started in just minutes:
77% of retail CFD accounts lose money.
How to buy Porsche stock, a step-by-step guide
Copy link to sectionBuying Porsche shares isn’t a complicated process, even for new investors. The section below explains the steps you need to take to make your first purchase.
1. Choose a broker and create an account
Copy link to sectionYou will need to use an online broker if you want to buy Porsche stock. Check out the comparison table above for suggestions. Once you’ve found a broker you can head over to their website and follow the instructions to create an account.
2. Decide how much to invest
Copy link to sectionIt is recommended you split your money across a range of investments and budget is key when it comes to investing. Although Porsche has been around for a long time, it will be a newly listed company and its price volatile so you should budget accordingly.
3. Research Porsche and its potential
Copy link to sectionBefore investing in any company you should take the time to dive into its fundamentals so you have an idea of what its future looks like. A good place to start is checking out financials and researching competitors.
4. Place an order for Porsche stock
Copy link to sectionHead over to your brokerage account and search for Porsche. You’ll be taken to its trading page where you’ll find its latest price. Enter how many shares you want to purchase and if you’re happy with its price, click the buy button.
5. Execute your order
Copy link to sectionYour trade will usually be executed immediately, although there could be slight delay if you place it outside of market hours. Once it’s live you’ll be able to visit the open positions section in your brokerage account to view how it is performing.
6. Review your investment regularly
Copy link to sectionEven if you plan to invest for the long term, checking your investments at regular intervals is always a good idea. That is especially the case for newly listed companies like Porsche. Make sure to keep up to date with its latest price movements and company news.
What is Porsche? And should I invest?
Copy link to sectionIt is a German car manufacturer specialising in high-performance vehicles. It sells sports cars, sedans, and SUVs targeting the luxury and performance markets with some of its creations costing more than $1 million. Porsche is owned by Volkswagen AG which controls bands like Audi, Volkswagen, Bentley, Bugatti, Lamborghini, and Ducati among many others.
Before investing in Porsche, it’s helpful to understand why the company is listing on the stock market. Volkswagen AG is looking to move into the electric vehicle industry. To raise the funds necessary it has decided to offer shares in one of its most iconic brands, which many expect will be valued close to $100 billion.
The decision whether to invest in Porsche or not comes down to your financial goals. As the early stages of a stock’s public life can be volatile while the market decides how much each share will cost, it may be better to wait until more information is available before investing.
How has the company performed in recent years?
Copy link to sectionSince becoming a subsidiary of Volkswagen Group in 2012, Porsche’s revenue has grown at a strong price. In the year before Volkswagen AG took over, its revenue was just under 11 billion Euros. Since then it has increased every year, hitting over 30 billion euros in 2021.
Like all auto manufacturers, the coronavirus pandemic impacted Porsche and in 2020 it had to close its factories. This resulted in fewer cars being delivered although its revenues and sales were largely unaffected. This was despite a global chip shortage impacting many of the world’s leading car makers.
The majority of its customers have higher disposable income and the high-end car market is better protected in times of economic downturns. Shares in its parent company climbed over 250% from mid 2020 to 2021.
Is it a good time to buy Porsche shares now?
Copy link to sectionIt depends on if you have confidence in it being able to continue increasing revenue and sales going forward. You should also consider the initial price volatility that usually occurs after a company IPOs. Some businesses that have offered shares via an IPO in recent times have experienced large losses and the same could happen to Porsche.
When it does IPO, 50% of the company will remain in the hands of Volkswagen AG, 25% will go to Porsche Automobil Holding SE, and the rest will be offered to retail investors. The way the company will be structured means outside investors will have little say in its future. This could discourage institutions from investing, which may lower demand and price.
If you plan to invest for the long term then you should study its fundamentals and look at the wider automobile market. If you want to trade Porsche stock for short term gains then technical analysis on its price chart is recommended. Whatever you decide to do, it’s a good idea to keep up to date with the latest news and market analysis which you can find below.
Ways to invest in Porsche
Copy link to section- Buy Porsche shares. The easiest way to invest in Porsche is to buy its shares. When you buy shares you own a piece of the company and your investments value will rise and fall in line with its performance.
- Invest in Porsche ETFs. Exchange traded funds are another easy way to invest in Porsche. To buy an ETF containing Porsche you will need to look at the automobile sector. You may also find it in the luxury market.
- Invest in Porsche funds or trusts. Funds are similar to ETFs although they are managed by a professional who buys and sells assets according to their expertise. You’ll find Porsche stock included in lots of auto industry funds.
- Trade Porsche. If you plan to trade Porsche then you’ll care more about price volatility over underlying fundamentals. Lots of traders perform technical analysis on price charts to predict short term changes in value.
- Spread betting. Spread betting is another way to trade Porsche’s short term price movements. One key benefit of spread betting is that your profits are free from tax, however when using this way to trade, you don’t actually own any shares.
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