If there is one man who can inspire you to reinvest dividends, it is Fredrik Lundberg. By constantly reinvesting massive dividends, his wealth has grown exponentially and he has probably never been richer than he is now.
Investment company Ludbergs
Lundberg’s private shareholding in his own investment company Ludbergs, but also Industrivärden, Volvo, Sandvik, Handelsbanken, today has a combined value of SEK 68 billion.
The investment company Lundberg B is something special because as an owner you also get another investment company, namely Industrivärden.
No bad dividends
This year, Fredrik Lundberg will pump in nearly SEK 1.1 billion in dividends from his holdings. Lundbergföretagen accounts for about SEK 460 million, Handelsbanken for SEK 350 million and Industrivärden for SEK 125 million. That’s a sick amount of money and the effect will continue year after year as the main scenario seems to be to continue adding to the stock.
The investment companies themselves also seem to continue to pump more shares into existing companies, at least if we listen to Mr. Lundberg himself.
A strange real estate sector
The Lundberg companies continue to invest mainly in real estate. What I personally find interesting is that real estate has not risen any more. Since October 2024, real estate index has lost almost 20%, including dividends. The stock market as a whole has performed significantly better.
This applies not only to Swedish real estate companies but also to foreign ones.
The same applies to forestry companies where something is crazy considering the price tag. In both SCA and Holmen you basically get the forest for the stock price today. Why it is like this with real estate and forestry today – Current economic cycle has hurt real estate more than other industries, just like during 2008 dowturn banks were hurt severely.
If you ask me, I would be surprised if within three years we don’t see a good return from the real estate sector and the forestry sector. That’s my guess anyway, then of course it’s a matter of choosing the right one from among the multitude of companies in the sector.
When it comes to real estate, Fredrik Lundberg also seems to be in a buying mood, but as usual, this type of person chooses not to speculate too much about the future. In a way, that’s right.
When asked if he thinks real estate is cheap right now, he replies:
“It’s up to each individual to decide. I don’t want to say it’s cheap, but I think we may have already passed the bottom and then it’s clear that it’s better timing to buy shares in real estate companies now than a year ago, that’s quite obvious.”
I talk about buying in sectors that are currently undervalued. Here I think that sector is real estate and forestry. There may be others as well, but these are the most obvious.
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