DISCOVERY (DSY) Shares
Discovery was first established in 1992 as a small-scale risk insurance company, and has since grown to cover approximately 5.1 million clients today, with various divisions offering a wide range of products that include medical aid, insurance, investment and credit card services.
In 2004 the company took its first step in globalizing its reach when it entered into a partnership with Prudential to open PruHealth in the UK. Building on this, Discovery then expanded its global reach to China when it went on to buy 25% of the Ping An Health Insurance Company, and has since then grown to enjoy a global market presence that includes The United States, The United Kingdom, Asia and Australia.
Discovery is made attractive by its offering which focuses on fundamental client needs, including financial security and health and wellness. By providing a client-focused approach, the company is able to add significant value to these critical areas through continuous innovation in designing frontline products that safeguard clients’ health and maintain their financial security in 2019 and beyond.
Discovery has been listed on the Johannesburg Stock Exchange (JSE) since 1998, where it currently trades under the stock symbol DSY, with a market cap of over R91 billion. Its varied portfolio includes Discovery Health, Discovery Life, Discovery Insure, Discovery Invest, Discovery Vitality and Discovery Card, with a client base that includes large, medium and small-size employers for health insurance, as well as individual investment and insurance buyers. As such, the company enjoyed a 16% increase in headline earnings in 2016 alone, up to R4 billion, significantly adding to its share price on the JSE.
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- While Discovery continues to build its global network of partnerships, it has achieved fantastic landmarks in South Africa, which remains its biggest market. Discovery Health exceeded 3 million clients in 2016 alone, Discovery Insure and Discovery Life are continuing to enjoy strong growth forecasts due to their expansion and profitable returns, while Discovery Invest has reached R50 billion worth of investments.
- The company’s global reach has been driven by its strategy of investing in its insurance, behavioral and technological assets, with a special focus on its policy of shared value insurance under its Vitality programme. This global market presence has been reflected in financial data which showed overall business growth of 51% in 2016, with shareholders receiving an average equity return of 18%. The company’s UK market presence in particular has been bolstered with digital innovations and a broadened product range, while Discovery’s partners in the United States, Australia and Asia continue to show a strong performance.
- Added to this, Discovery’s product offering will be further differentiated in the market with its plans to establish a full-service retail bank as a result of the success of the Discovery Card.
DISCOVERY INVESTOR TIPS
- With Discovery’s latest business investments expected to show growth in the near future, the recent slowdown recorded on the live online stock charts is set to reverse as these investments begin to provide dividends for those who choose to buy shares on the JSE.
- Discovery’s wide global reach and strong growth forecast show that its share price will continue to reflect positively on this historically strong stock, making Discovery shares a good long-term buy as the company works to expand and purchase ever greater global partnerships.
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Buy DISCOVERY stocks / shares – ? A Step by Step Guide how to Buy / Purchase DISCOVERY Stocks or Shares online.
Before buying any stock or share one has to consider a few factors.
STEP 1: PROPER RESEARCH IS ESSENTIAL
Upon deciding you want to buy DISCOVERY Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.
Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.
STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN DISCOVERY STOCKS / SHARES
It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a $5 stock, multiply 100 by $5 to get $500.
STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE
Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.
STEP 4: OPEN A BROKERAGE ACCOUNT
A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.
STEP 5: COMMIT AND PURCHASE DISCOVERY STOCKS / SHARES
Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out. Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of DISCOVERY stocks / shares.
5 Questions to ask yourself before purchasing any stocks or shares.
- Is it the best time to buy this stock / share?
- Should I buy DISCOVERY stocks / shares in the current economic climate?
- Can I afford to buy this stock / share?
- What is the forecast of the stock / share growth?
- What is the current price per earning ration on the stock / share?
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