Single Family, One Country, a Whole Lot of Assets
"By the late 1990s the Wallenbergs controlled some 40% of the value of the companies listed on the Swedish stock exchange."
My thanks to Tyler Cowen for this Sweden fact of the day.
Two more interesting facts to add:
The half-niece of the most famous Wallenberg, Raoul, is married to Kofi Annan.
The Wallenberg's Stockholms Enskilda Bank, "the start of the empire," was accused of collaborating with the Nazis.
One commentator on Marginal Revolution responded with his own Mexico fact of the day:
"46.6% of the Mexican stock market index is currently comprised [of] Carlos Slim's companies."
Comments (6)
Andrew Johnson
Is this so unfair? Holding 40% of the value would put them in a very illiquid position. Perhaps this would mean there is a greater incentive to see the company through long term growth as opposed to the short term profits which the left is so fond of rallying against.
Published: October 15, 2006 10:35 PM
Björn Lundahl
I do not think it is that bad that few stockholders control one company or many companies
They have more incentive and can more effectively control the board of directors and the companies. At the same time it is good that the public owns a lot of shares.
Before entering the EU, Sweden had few tariffs and import quotas and adopted mainly a policy of free trade. Capital on the other hand was heavily regulated. Now foreign stockholders and companies, can quite freely, I believe, buy shares in Swedish companies and invest in Sweden. Taxation and death duties were in Sweden, very high too. Because of regulations and high taxation, capital got concentrated in a few hands. This might change.
My position on this is a reflection of what the outcome is in a free market. Whatever that will be.
Björn Lundahl
Göteborg, Sweden
Published: October 16, 2006 2:22 AM
Yancey Ward
I find this fact hard to believe, but if true, it comes as a surprise to find such inequality in Sweden.
Published: October 16, 2006 10:44 AM
Björn Lundahl
In Sweden we have a Capitalist which might be richer than Bill Gates!
Ingvar Kamprad, an industrialist from Sweden. He founded IKEA, the home furnishing retail chain, which sell low priced furniture’s all over the world (235 stores in 33 countries). His business idea was: "We shall offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them."
Go to;
http://www.answers.com/topic/ingvar-kamprad
And to;
http://en.wikipedia.org/wiki/IKEA
Photo on a “typical store”, go to;
http://commons.wikimedia.org/wiki/Image:VillepinteFrance.JPG
Björn Lundahl
Göteborg, Sweden
Published: October 16, 2006 12:08 PM
DS
From the size of their fortune and the length with which they have heald on to it I would be willing to bet that they have and have had a very cozy relationship with the Swedish government for a very long time.
Published: October 16, 2006 6:45 PM
Joachim from Stockholm
As a response to Björn Lundahl:
Ingvar Kamprad was certainly born in Sweden but since 1976 he lives and pays taxes in Switzerland.
Published: December 18, 2006 8:26 PM