Last week, Family Capital looked at listed family-owned diversified holding companies and how they are a good investment choice over a 20 year period. Well, we looked into this in a bit more detail and found the Swedish variety of these companies were the best investment choice – at least over the short to medium term.
Four of them – Investor AB, Investment AB Oresund, Investment AB Latour, and Kinnevik – all beat the benchmark indices of the exchanges they’re listed on – the OMX30 and the OMX Stockholm All-Share. Pretty much all of them beat the index over anytime period between 2009 and now.
Perhaps the best performing stock against its index is Kinnevik, controlled by the Stenbeck, Klingspor and von Horn families, outperformed the OMX30 over any period since 2009. So, if you invested one Swedish krona in Kinnevik back in July 2009 it would now be worth SEK227, whereas a krona investment in a tracker fund of the OMX30 over the same period would now be worth SEK80. Stock picking still has its advantages…although, of course, for the investor outside of Sweden, the exchange rate differential would also need to be taken into consideration.
And listed stock worth one krona back in 2009 in Investor AB, Sweden’s best-known diversified holding group and majority owned by the Wallenberg family, would now be worth SEK197.
Also performing well during the last ten years is Investment AB Latour, controlled by the Douglas family. It’s part of the OMX Stockholm All-Share index, and its listed stock has outperformed the index by more than 100% in the last ten years.
Less stellar performance but also notable is the share price of Investment AB Oresund, controlled by the Oviberg and Hagstromer families. Its listed stock outperformed the OMX All-Share index over five year period, but underperformed since the beginning of 2010. Interestingly, it owns around 5% of Investor AB listed stock. Wealthy families like investing with other wealthy families.
But outperformance across the board in among these groups in Sweden wasn’t 100%. A fifth listed family-controlled investment group called Industrivarden and majority owned by the Lundberg family performed less well compared with its peers in terms of stock market performance. With the OMX All-Shares index outperforming it since the beginning of 2010.