WPP (LSE: WPP) is a multinational communication, public relations, and advertising company. They are based in London. WPP is one of the world’s “Big Four” agencies.
WPP’s company holdings include Grey Ogilvy, Mindshare, Brand Union, and Hogarth Worldwide.
Scroll down to read more about investing in WPP shares.
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Step 1: Find a broker
Shares of WPP are listed on the London Stock Exchange. If you're looking to invest in WPP shares, you'll need a broker with access to this exchange.
If you want to compare brokerages, do your research on factors like the broker’s commission structure and their currency conversion fees since these can have a noticeable impact on small investments.
Also, consider what trading instruments and markets are available. In addition, check whether they offer fractional shares so you can diversify your investments into more expensive shares.
If you're still learning about investments, the ability to create a demo account where you can test your skills is helpful.
Step 2: Fund your account
Deposit funds into your account via bank transfer or debit card. Some brokers will accept credit cards or PayPal, but this is relatively uncommon.
It may take a few days for the deposit to reach your account. This timeframe may vary according to the method you choose.
Step 3: Decide how much to invest in WPP
There's no guarantee you won't lose money when investing in shares, even in established companies like WPP. Share prices fluctuate according to company performance, market conditions, and myriad other factors. Therefore, avoid investing more than you can afford to lose.
Step 4: Choose between purchasing shares or an ETF
ETFs allow investors to diversify their investments in a simple manner. Some ETFs are themed for a specific sector, for example, there are ETFs that focus on the media, communications, and entertainment industries.
You can invest in WPP indirectly with ETFs that hold their shares. Examples include iShares Core MSCI EAFE ETF (IEFA), Vanguard FTSE All-World ex-US Index Fund ETF Shares (VEU), and iShares Global Comm Services ETF (IXP).
Step 5: Configure your order
A market order is the most basic of orders. As the name suggests, they allow you to purchase shares at the current market price.
Most brokers support orders that will automatically execute when pre-determined conditions are fulfilled. These orders can be used to prevent heavy losses or optimise your profits.
You may also be able to set up a recurring order to purchase additional shares at regular intervals and grow your portfolio over time.
Step 6: Buy your shares
With your order configured and funds in your account, place your order to buy shares.
Keep an eye on industry news, official WPP press releases, announcements, and results. On days when information is released, you can expect to see a stock price reaction, particularly if they miss forward guidance or expect the next quarter to be very strong.
Performance at a company the size of WPP depends on many factors. However, given their customers are businesses, they may find it more difficult to grow during a recession when economic growth is slower and companies want to trim their marketing budgets. However, on the other hand, when the economy is growing, their clients need WPP’s expertise to attract new customers.
WPP and competitors in the communications and media industry are very acquisitive. These companies buy smaller competitors to expand their client list, boost their revenue, and take marketshare. If WPP acquires a new agency, this can have an effect on their share price just as rumours of an acquisition of or merger with WPP can.
Keep track of what WPP’s main competitors are up to. Next Fifteen Communications Group (LON: NFC), Tarsus Group (LON: TRS), Huntsworth (LON: HNT), and M&C Saatchi (LON: SAA) are all noteworthy competitors of WPP.
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