Potentially, foreign investors may ditch Samsung stock worth billions of dollars since they are selling billions of shares.
Young South Koreans are increasingly buying billions of dollars worth of stock from foreign investors. Their holdings have surpassed $1 billion, with an efficient surge in shareholders under 20 years old. Somehow, this hints that the younger generation is bullish on Samsung’s potential. Official data from the Korea Securities Depository portal shows that there are nearly 400,000 young shareholders in Samsung Electronics who are under the age of 20.
Reportedly, the number of shareholders in this demographic has increased by almost 21x in four years. The Korean brand is the largest in South Korea by market capitalization, with 4,672,130 shareholders. The metrics reveal that young people aged 20 years or even younger own 391,869 shares, accounting for 8.38% of the brand’s entire shareholding, and the total value of the shares owned by these youngsters is 1.54 trillion won, or $1.12 billion.
The young South Korean investors are increasingly buying Samsung stock, averaging 46 shares each. The reason behind this rise may be due to a 2018 stock split that made shares more affordable; some view it as a safe investment, while others are drawn to the brand’s dedication to future technologies and potential for high returns.
It seems that if they have a longer investment horizon of two or even more decades, they wouldn’t have to worry about the stock’s stagnant performance over the past year, focusing on the long-term potential instead. The stock has boosted 402% over the past 14 years, after all. Noticeably, the fact that Samsung Electronics executives bought nearly $1 million in shares in the brand this month alone should also show them that even insiders are convinced of the company’s long-term potential.
However, those who do study the companies they invest in will be anticipative that Samsung’s bets on technologies in the future will pay off and help generate significant returns for investors.
