How To Buy NIO Stock
Whether you’re a believer in the future of electric vehicles (EVs) or simply want to diversify your portfolio by investing in foreign companies, Chinese EV powerhouse Nio could be a great choice.
Nio was founded in 2014, and it’s often referred to as the Tesla of China. As a result, its stock price has skyrocketed since going public in the U.S. Shares of Nio are up more than 700% over the past three years, going from $1.56 in October 2019 to more than $12 at the time of this writing.
If that kind of performance makes you want to give your portfolio a jolt, here’s what you need to know to buy Nio stock.
How to Buy Nio Stock (NIO)
1. Research Your Investment Options
Before buying the shares of Nio or any other stock, you need to do your due diligence. That means studying the company to ensure you feel confident about its strategy and performance.
Valuable sources of information include company filings with the Securities and Exchange Commission (SEC), including annual and quarterly reports. Nio also posts those documents on its investor relations website.
You should also research analyst reports on Nio and other companies. Third-party firms like Morningstar often provide analysis of stocks, and Forbes Advisor experts provide insights and updates about company performance.
You can use publicly available information, expert tips and your own judgment to make informed decisions about investing in Nio.
2. Think About How Much to Invest in NIO
For investors looking to profit from the booming EV market, Nio might look like a bargain. Tesla, one of the biggest names in electric vehicles, traded at more than $200 per share in October 2022. At about $12, Nio is a more affordable option, and even beginner investors can likely afford whole shares.
However, putting all of your money into one stock or one industry isn’t recommended. You want to build a diversified portfolio, so think about how Nio will fit into your overall investment strategy.
Stock prices can fluctuate significantly, so only invest money you don’t need to cover short-term bills or necessary expenses.
3. Monitor Nio’s Performance
When you buy any stock, it’s wise to review your portfolio and its performance. Looking at an annualized percentage return can help you compare a stock’s performance to your overall portfolio and the performance of company competitors.
Industry benchmarks, such as the S&P U.S. & China Electric Vehicle Index, can be helpful in analyzing how Nio is doing relative to the electric vehicle market.
How to Invest in NIO With Index Funds
When you’re deciding how to invest your money, diversification is the name of the game. The stock market can be volatile, and investing in a range of industries and companies can help reduce your level of risk.
Index funds, which aim to replicate the performance of a benchmark index, can be an easy way to diversify your portfolio. Luckily, about 80 exchange-traded funds (ETFs) hold NIO stock. For example, you can invest in the Vanguard FTSE Emerging Markets ETF (VWO) or the KraneShares MSCI China Clean Technology Index ETF (KGRN) to invest in Nio and other companies at once.
More from source https://www.forbes.com/advisor/investing/how-to-buy-nio-stock/
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