Life – a user's manual Part II - Boksidan

For those who avoid crisis companies, it is often quite easy to increase the capital. Anyone who sees the
trend between 1970-2005 for the companies that survived (chart 2) notes that on average, the value of the
companies during the period increased from 1 to 70. This does not mean that all companies rose even close
to 70 times. Many instead appear to have hardly risen at all. If the most price rockets excluded (chart 3) its,
however, clear that all the companies rose, although some did not rise very much. Furthermore, there were a
number of dips in the curves even after 1980, i. e. around the year 1983 (the steel crisis that threatened
Garphyttan, Gränges, Fagersta, Sandviken, and Uddeholm), 1987, 1991 (banking and real estate crisis), 1998
(aside from the rockets) and 2001 (IT crash). Then there was a sharp dip in 2007 and a smaller ditto 2011 th .
So roughly every five years.
Chart 2.
Price trend (considered splits and bonus issues) for 35 years from 1/7-1970, for the large companies that
were listed during the entire period. Data from Dagens Nyheter around the first of July every year. Data
on splits and bonus issues from the companies. The chart presents the number of times the course has
risen from 1970 (the price 1970 is set as one for all companies).
211