Samsung Investments
Samsung Electronics has made a number of investments in local South Korean companies over the last 10 years, many of which are investments in developing technology that Samsung uses or has the potential to use in one of its many businesses. While investment timing is certainly a consideration, making such investments is as much a business decision as it is a financial one, and investment performance does not take into consideration the positive aspects of products developed and sold as a result of such investments. That said, it is also nice to have positive returns, so after attention was drawn to Samsung’s long-term investments in Korean companies when they announced an investment in Rainbow Robotics (277810.KS) late last month, we went back to check on how the company’s other investments have done over the years.
All in, Samsung has had mixed results over the mid-term as to investments made since 2020, but earlier investments have proved extremely favorable, with the entire portfolio up 166.7% since 2013, or an 11.5% CAGR. Samsung has invested ~$409.3m in local South Korean companies, taking a roughly 6.4% stake since 2013. The average investment is ~$37.3m US). While Rainbow has soared since the announcement was made, increasing the value of that investment from $46.4m to $145.7m, we expect there will be many bumps in the road for that asset over the next few years.
All in, Samsung has had mixed results over the mid-term as to investments made since 2020, but earlier investments have proved extremely favorable, with the entire portfolio up 166.7% since 2013, or an 11.5% CAGR. Samsung has invested ~$409.3m in local South Korean companies, taking a roughly 6.4% stake since 2013. The average investment is ~$37.3m US). While Rainbow has soared since the announcement was made, increasing the value of that investment from $46.4m to $145.7m, we expect there will be many bumps in the road for that asset over the next few years.
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