Compass Group (LSE: CPG) is a contract food service company that serves food in schools, offices, factories, universities, hospitals, sporting venues, and more. Anywhere a large group of people comes together, you can hire Compass to feed them all.
The scale of their operations is impressive. Compass serves billions of meals every year.
Read on for our guide to buying Compass Group shares.
Compare share trading platforms on Finty. Research fees, commissions, tradable assets, markets, etc.
Step 1: Find a broker
Shares of Compass Group are listed on the London Stock Exchange. If you want to invest in the company, whatever broker you decide to use should have access to it.
Comparing brokers is easy on Finty. One of the most important things to consider is their fee schedule, principally for trades and currency conversion.
Consider also which trading instruments and markets are offered. Whilst you may want to invest in Compass and other UK-based companies now, in future you may want to invest in international companies.
Additionally, check if the broker has fractional share investment, giving you a way to diversify your investments with higher-priced shares in the FTSE 100, Nasdaq, etc.
If you are undecided, you may be able to create a demo account and try out a platform before depositing funds.
Step 2: Fund your account
Bank transfers and debit cards are the most widely-supported ways of depositing funds into your account. Some brokers will accept credit cards and PayPal, although this is rare.
It can take some time to receive the money into your account. This can differ based on the method you decide to use.
Step 3: Decide how much you want to invest in Compass Group
It's important to understand that there is no guarantee that your investment won't go down in value, even for an established company such as Compass Group.
Share prices fluctuate based on the company's performance, market conditions, and numerous other variables. Therefore, you should avoid investing more than you can risk losing.
Step 4: Choose between buying shares or an ETF
ETFs are a way for investors to diversify their investment portfolio in a straightforward manner.
ETFs with shares of Compass Group include iShares Core MSCI EAFE ETF (IEFA), Schwab International Equity ETF (SCHF), and JP Morgan Betabuilders Europe ETF (BBEU).
Step 5: Configure your order
A market order is the most simple to configure, requiring practically no configuration beyond how much you want to invest. As the name implies, once a market order has been executed, you’ll purchase shares at the current market price.
Most brokers support trigger orders that execute automatically when certain conditions are met. They can be used to protect against losses when the market drops or to take profits when the value rises.
It may also be possible to create a recurring order and purchase shares regularly, building your holding over time.
Step 6: Buy your shares
With your order in place and the funds are in the account of your choice, place your order to purchase shares.
News about Compass Group, the catering industry, the cost of raw ingredients, and labour availability may be relevant to Compass and its performance. Whether these stories are positive or negative, they may impact the value of your investment. For example, if Compass lost a large contract, entered a new market, or acquired a smaller rival, the share price may respond positively or negatively the news.
Monitoring their main competitors will also help inform you of their performance against the broader market. Aramark (LON: OHHB), Elior Group (EPA: ELIOR), CH&Co Group, and Sodexo SA (EPA: SW) can be considered competitors of Compass Group for food service.
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