I’ve been thinking about buying SoftBank (SFTBY) stock for a while and had hoped to buy it around $35 or under. But after waiting for many months, it seems like it won’t get that low and so I decided to buy 500 shares on 12/28/17 at an average price of $39.70. The stock had come down from a 52 week high of $46.56 in late October 2017 so I thought I better buy and grab that price of just under $40.
Why I Like SoftBank And Bought The Stock
Softbank is primarily a Japanese telecommunications company but it is branching out into much more than that. It is led by Masayoshi Son who is becoming one of the world’s biggest technology investors. The company started a $100 billion Vision Fund that boasts investors such as Apple, Foxconn, Qualcom and others including about $60 billion from wealthy Saudi Arabia investors.
This Vision Fund is investing in all sorts of technologies and companies from around the world including some big name start ups and established companies such as FlipKart, Slack, NVIDIA, WeWork, OneWeb, and Brain. You can see some of the companies this Vision Fund has invested in so far here.
SoftBank itself owns all or part of Yahoo Japan, Sprint, Alibaba, Arm Holdings, Didi Chuxing, Uber and others. What it all adds up to is a company that has become a technology ETF of sorts with a visionary leader who wants to own and invest in future technologies. I hope to hold SoftBank stock for 5 or more years in order for some of these technology investments to prove fruitful.
Buying SoftBank stock is also a play on Japan which has done nothing for the last 20 years but I have read an increasing number of articles from writers who believe the Japanese economy is starting to pick up. SoftBank is reportedly the fourth biggest company in Japan (publicly traded) so if Japan picks up so should it.
Of course this stock is not a slam dunk. SoftBank owns about 84% of Sprint which is tiny compared to AT&T and Verizon and has been nothing but problems after being acquired. Sprint failed in its attempt to merge with T-Mobile and it carries a lot of debt.
**SoftBank owns Arm Holdings and I’m not sure how it comes into play with the recent chip security flaws that have been in the news. However, I bought my 500 shares of SFTBY before that chip vulnerability was announced so there is nothing I can do about that.