Investor AB

Investor AB is a premier Swedish holding company and the primary investment vehicle of the influential Wallenberg family. Founded in 1916, it’s not a typical company that makes and sells a product; instead, its business is owning other businesses. Think of it as a curated, publicly-traded portfolio of high-quality Nordic and global companies. Its strategy is built on a philosophy of long-term, active ownership. This means they don't just buy shares and sit back; they take significant stakes in companies and use their extensive network and industrial experience to support and develop these businesses over decades, often through board representation. For an ordinary investor, buying a share of Investor AB is like buying a slice of a professionally managed, time-tested collection of corporate champions, often with the added perk of getting it at a discount.

To understand Investor AB, you must understand the Wallenbergs, a family that has been at the heart of Swedish industry for over 160 years. Their guiding principle is “Esse non videri”—a Latin phrase meaning “To be, not to be seen.” This low-profile, high-impact approach translates into a patient, industrialist mindset. They are not financial engineers looking for a quick flip; they are builders. Their focus has always been on fostering innovation, international expansion, and operational excellence within their portfolio companies. This long-term commitment provides a stable foundation that is immensely attractive to investors who share a similar, business-focused philosophy, such as followers of value investing.

Investor AB's portfolio is structured into three main parts, giving it a powerful blend of stability, growth, and exposure to different asset types.

This is the bedrock of Investor AB's portfolio, consisting of significant ownership stakes in large, publicly traded, market-leading corporations. These are often considered the crown jewels of Swedish and global industry. By holding substantial positions, Investor AB can influence strategy and ensure a long-term focus. This part of the portfolio provides stability and a steady stream of dividends.

• Key Holdings Include: Atlas Copco (industrial equipment), ABB (automation and robotics), AstraZeneca (pharmaceuticals), and SEB (banking).

Named after a family matriarch, Patricia Industries is the arm that owns and develops wholly-owned or controlled private companies. Think of this as Investor AB's growth engine, where they can nurture businesses away from the short-term pressures of the public stock market. The goal is to build these companies into future market leaders.

• Key Holdings Include: Mölnlycke Health Care (medical products) and Permobil (advanced mobility solutions).

Investor AB was one of the founders of EQT, a leading global private equity firm. It remains a significant owner in EQT, giving its shareholders exposure to the world of private equity and venture capital. This diversifies their holdings and provides another avenue for growth through investments in a wide range of unlisted companies.

Investor AB is a perennial favorite in value investing circles for several compelling reasons.

This is the secret sauce. The total market value of all of Investor AB's holdings (minus its debt) is called its Net Asset Value (NAV). In simple terms, it’s what the company would be worth if it were liquidated today. Very often, Investor AB's stock trades at a price that is lower than its NAV per share. This gap is known as the “holding company discount.” For a value investor, this is a dream scenario: you get the opportunity to buy a fantastic collection of assets for 80 or 90 cents on the dollar, creating an immediate margin of safety.

Patience is a virtue, and in investing, it's also a source of wealth. Investor AB is a masterclass in the power of compounding. By focusing on growing the intrinsic value of their businesses over decades and reinvesting the dividends, they have created an incredible track record of wealth creation. Buying Investor AB is a bet on the continuation of this disciplined, long-term approach to capital allocation—a core tenet championed by legendary investors like Warren Buffett.

The Wallenberg family, through its foundations, remains the largest shareholder. Their interests are perfectly aligned with those of other shareholders. They are not absentee managers; their wealth and legacy are tied directly to the success of Investor AB. This alignment is a powerful assurance that decisions will be made with the long-term health of the company in mind, not for short-term gains.

Investing in Investor AB is more than just buying a stock. It's a way to partner with one of the world's most respected industrialist families. It gives you a diversified portfolio of world-class companies, professional and active management, and, quite often, the chance to buy it all for less than its underlying worth. For anyone looking to invest in high-quality European businesses with a multi-generational time horizon, Investor AB is a textbook example of a company built to last and create value.