Investor AB part 3: Alternatives

When I was looking at Investor AB, the Wallenbergs and the Swedish Investment landscape in general, I came across some other interesting Investing-companies. In this article I want to present you a first overview about two names that often pop up. Lundbergföretagen and Industrivärden. Fortunately “don’t invest in companies with names you can’t pronounce” is not a general investment rule.

Lundbergföretagen AB (real estate and stocks)

lundbergs_logo

Latest net asset value February 23 2016: SEK 444/share

B share = 11.05.2016 SEK 443,75/share (no upside to NAV, now the shares trade even higher)

Lundbergs is an investment company that manages and develops a number of companies by being an active, long-term owner. The company was found in the year 1944 and was engaged in construction operations in its early years. Then they moved to investing – first into properties, later in publicly listed companies.

This is how they present their current Portfolio:
Bildschirmfoto 2016-05-24 um 18.52.30

Fastighets AB L E Lundberg is one of the major private real estate owners in Sweden.
Hufvudstaden, which was founded in 1915, is one of Sweden’s leading real estate companies.
Holmen is a forest industry group whose business concept is to develop and conduct operations in three product-oriented business areas comprising printing paper, board and wood products, and two business areas based on raw materials – forestry and energy
Indutrade is an international industrial group that sells and develops components, systems and services with a high-tech content.
Husqvarna is one of the world’s largest manufacturers of outdoor products such as robotic lawnmowers, garden tractors, chain saws and trimmers.
Industrivärden is one of the Nordic region’s leading investment companies (see below)
Handelsbanken is a full-service bank for private and corporate customers, with nationwide networks of branch offices in Sweden, the UK, Denmark, Finland, Norway and Netherlands (see below)
Sandvik is a high-tech engineering group
Skanska is one of the world’s leading construction groups with expertise in construction, development of commercial and residential projects and public-private partnerships.

 

Their holdings are looking earth grounded and more or less attractive to me. Fastighets & Hufvudstaden, their real estate companies, are roughly accountable for 40% of their NAV. Some people are talking about a bubble in Nordic real estate – this is something to look at. The other holdings are to a greater or lesser extent boring Industrials – Boredom Is a Good Friend of Long-term Investors.

Industrivärden (mostly stocks)

Net asset value SEK 170 Per share on 30 April 2016
A share = 11.05.2016 SEK 152,50 (upside to NAV ~11%)
C share = 11.05.2016 SEK 139,375 (upside to NAV ~22%)
Industrivärden has a pretty similar founding history to Investor AB. It was established by Handelsbanken in 1944 as a collection of shareholdings that the bank had acquired following the market crash in the 1930s and distributed them to the bank’s shareholders. Their mission is to conduct long-term asset management that creates value through active ownership.
This is how they present their current Portfolio:
Bildschirmfoto 2016-05-24 um 19.59.28
Their biggest holding is Svenska Handelsbanken, as the name suggests a Bank. If you don’t like that fact I recommend you the articles from valueandopportunity about them, beginning with this one.
Many value investors are of the opinion that banks are not investable. Either because they say the business is too complex or because they think banks are doomed anyway…
The most other names are well known:
SCA is a Swedish consumer goods company and pulp and paper manufacturer, in Germany mostly know for their Tempo and Zewa brand handkerchiefs
The Volvo Group is a world-leading provider of commercial transport solutions. Don’t confuse them with Volvo Cars
Sandvik is a high-tech engineering group (also owned by Lundbergföretagen)
Ericsson is a Swedish multinational corporation that provides communication technology and services (also held by Investor AB)
ICA Gruppen is a leading retail company, with focus on food and health. The core business is grocery retail, with grocery retail operations conducted in Sweden and the Baltic countries.
SSAB is a Swedish steel manufacturer of high-strength wear and structural steel
Again, mostly “boring” and solid Industrials … and a quality Bank. Nothing really spectacular. “Steel manufacturer” sounds not appealing but SSAB is just 2% of them.

Conclusion:

I think both companies are to a certain extent interesting and maybe I will take a look at them at a later time. They both don’t have the Health Care aspect within – which I liked about Investor AB so much. I also haven’t looked at their managements and their capital allocation. At this point in time I’m happy with my choice of Investor AB.
Disclaimer: The content contained on this site represents only the opinions of its author(s). I may hold a position in securities mentioned on this site. In no way should anything on this website be considered investment advice and should never be relied on in making an investment decision. As always please do your own research!
Btw: The Swedish Investment landscape with all its cross-holdings relationships reminds me to a certain degree of “Deutschland AG”
PS: Whats also is interesting is that Investor AB and Lundbergföretagen AB are shareholders of Husqvarna. Maybe this is a interesting company to research. Maybe I should also take a look at Handelsbanken.
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7 thoughts on “Investor AB part 3: Alternatives

    • Hi,
      Thanks for your comment. I know GBL/Albert Frère from Belgium -interesting management and history but very Energy/Material focused. Also they have a very complex capital structure with Pargesa Holding SA. Which other interesting listed Holdings do you know from Belgium?

      Like

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