Many people seem to think that the investment company Investor is the only stock you need in the portfolio. With its +15.4% on average annually for an extremely long time, it’s hard to argue against.
The special thing about Investor is that it has been able to perform terribly well for a terribly long time. The sad thing is that we never know what the future will look like and putting all our eggs in exactly the same basket is stupid despite history.
Now, Investor has recently put a new CEO at the helm, Christian Cederholm, and things may change. For example, he seems to want to increase the rate of investment in the coming years. Cederholm has been active within the Wallenberg family’s powerful company throughout his working life. Before the CEO role, he was also responsible for Investor’s unlisted portfolio, Patricia Industries, which achieved enormous success over the years.
Continued focus on rising dividends
Investor’s largest holdings have generally performed well in dividends in 2024 with nice dividend growth. Investment companies tend to distribute all the dividends they receive themselves to their own shareholders for tax reasons. My bet is that next year’s dividend will land at SEK 5.2. It gives a dividend yield of 1.8% .
The only downside apart from Electrolux and Husqvarna right now is the generational changes we are currently seeing. There are many key figures of remarkable age. Examples are cousins Marcus Wallenberg and Jacob Wallenberg, who are both 68 years old.
You should not be afraid to buy Investor today. This is going to be one of the largest company in my portfolio. At least I would not recommend holding only Investor in the portfolio, even if this would have been the best choice in hindsight.
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