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Hi Partner 👋
Over the past few weeks, we’ve been giving you an extensive Portfolio Update.
In case you missed it:
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Let’s dive in the final part of Our Shopping List today!
Investor AB ($INVE-B)
How does the company make money?
Investor AB is the Wallenberg family’s listed holding company.
That means it combines two interesting things:
A holding company, a type of asset that often trades at a discount to the assets it owns
A family owned business, meaning there’s a lot of skin in the game
Investor AB owns significant stakes in Sweden’s industrial champions like Atlas Copco, ABB, and AstraZeneca.
They focus on long-term ownership, active board engagement, and capital allocation across listed and unlisted assets, funded by dividends and occasional asset sales.
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Why is it an interesting company?
The best of Europe in a single share: Buying Investor AB gives you exposure to a pre-built collection of world-class companies like AstraZeneca (medicine), Atlas Copco (industrial tools), and ABB (robotics). It is effectively a curated fund run by one of the most proven families in European business.
Wonderful companies at a fair price The stock trades near its intrinsic value
An amazing track record: Over the past decade, earnings have grown by nearly 25% per year. The stock has nearly doubled over the past five years. Plus, they pay a growing dividend that has never been cut.
Solid balance sheet: The company has very little debt. That means they aren’t just safe during a market crash, they actually have the cash to go shopping for more companies when prices are low.
The main risk is market exposure: Roughly 70% of the portfolio consists of publicly traded securities. When global markets sell off, Investor AB’s net asset value will decline with them. It’s a great long-term bet, but you should expect some volatility along the way.
At which price are we interested?
Like most holding companies, Investor AB frequently trades at a discount to the underlying value of its assets.
I think it starts to get interesting at a P/B ratio of 0.9x.
That implies a stock price of around 281 SEK (current stock price: 372 SEK).