Exploring Investment Alternatives to IKEA: Broadening Your Portfolio
Given that IKEA is not available for public investment due to its private ownership by the Interogo Foundation and its intricate corporate structure designed to obviate the need for an IPO, investors seeking exposure to the home furnishings and retail sectors have various alternatives to consider. These options can help achieve a diversified investment portfolio, potentially capturing similar market dynamics and growth opportunities as IKEA offers in retail and design.
Publicly Traded Competitors: Look into companies that operate in the same or similar sectors as IKEA. Home Depot (HD), Lowe's (LOW), Wayfair (W), and Bed Bath & Beyond (BBBY) are examples of publicly traded companies in the home improvement and furnishings sector. These companies offer a wide range of products similar to IKEA's offerings and have a significant presence in various markets.
Exchange-Traded Funds (ETFs): ETFs focused on retail or consumer discretionary sectors can provide diversified exposure to the broader retail market, including companies involved in home furnishings. ETFs like the SPDR S&P Retail ETF (XRT) or the Vanguard Consumer Discretionary ETF (VCR) include a variety of retail stocks, potentially mitigating risk through diversification.
International Retailers: Exploring investment opportunities in international retail companies with a presence in markets similar to IKEA can also be a strategic move. Companies like Nitori Holdings Co., Ltd. in Japan or Home Retail Group in the UK operate in home furnishings and offer unique growth opportunities within their respective markets.
Technology and E-Commerce Platforms: With the rise of e-commerce, investing in technology companies that provide platforms, logistics, and services to furniture and home goods retailers could offer growth opportunities. Companies like Shopify (SHOP), which powers online retail websites, or Amazon (AMZN), with its vast marketplace, including furniture and home decor, represent indirect ways to invest in the retail sector's digital transformation.
Before venturing into these alternatives, conducting thorough research and assessing each investment's potential risks and rewards is essential. Diversification across different sectors and investment vehicles can help mitigate risk, but aligning these choices with your investment goals, timeline, and risk tolerance is crucial.
Who owns IKEA?
The Interogo Foundation privately holds IKEA, and a complex business structure has been designed to ensure there will never be a need for an initial public offering (IPO).
Along with helping IKEA make a non-taxable profit, IKEA's complicated corporate structure allowed its founder, Ingvar Kamprad, to maintain tight control over IKEA's operations. In June 2013, Ingvar Kamprad resigned from the board of Inter IKEA Holding SA, and his youngest son Mathias Kamprad replaced Per Ludvigsson as the chairman of the holding company.
How to Invest in Stocks
Set your investment goals. Whether a long-term investor or a day trader, your plan should detail your profit expectation and the stop-loss level at which you will liquidate the trade.
Choose the Broker that best fits your strategy. The Broker will allow you to buy and sell the Stock. This step is vital; opening an account with a Broker that you end up unsatisfied with will be problematic. Although you may open an account with another, it's better to pick the right Broker straight from scratch.
Open a Trading Account with the Broker. Most Brokers will ask you to upload an ID and proof of residence.
Deposit Funds. Funding alternatives range from credit cards to bank transfers and e-wallets. The available options will depend on each platform. Trading Accounts are available in US Dollars (USD), Euros (EUR), Pound Sterling (GBP), Swiss Franc (CHF), and Australian Dollar (AUD) as the base currency.
Buy the chosen asset and Apply your Investment Strategy. Once the Broker confirms that your account is funded and ready to trade, it's time to buy the asset and apply your trading strategy.
Review your performance and calibrate the strategy as needed. You can't expect to get it right from the beginning. When investing, especially while you are starting, you will make mistakes. That's a given. Learn from them, improve and twitch your strategy as needed.
However, before you proceed, you must take into account that:
Past performance doesn't mean future returns. You will hear stories about that "Trader that made a fortune". Don't assume an investment will continue to do well simply because it's done well in the past.
Only invest what you can afford to lose. Make sure to keep your bank balance positive. There is no certainty that it will go well.
Don't unquestioningly trust what you read online. People are biased, and even the top financial gurus make mistakes. Learn, investigate and reach your conclusions. Reading financial media will help you make more informed decisions, but do not take it as proven truth.
Stay Calm. Financial market volatility is scary, and it is easier to say than to do, but remember that it is hard to make good decisions while anxious. If you are getting too worried about your investments, then you should invest a smaller amount of money.
IS IKEA STOCK LISTED ON A STOCK EXCHANGE?
If you are browsing the internet looking for an investment platform where to buy IKEA shares, look no further. We have bad news: IKEA isn't listed on the stock exchange. Hence, you cannot acquire shares of the Swedish design giant.
At the end of this article, we detail some alternatives to invest.