Posted on 11/16/2008 6:05:37 AM PST by WesternCulture
Despite their billions, Sweden’s wealthiest individuals have shown that not even they can withstand the effects of the financial crisis coupled with a dismal year on the stock market.
A recent ranking by the Veckans Affärer business magazine reveals that the number of Swedish billionaires has been cut by nearly 30 percent in the last year, leaving only 98 individuals who are rich enough to measure their wealth in ten figures.
Collective losses for the richest of Sweden’s rich amount to a staggering 200 billion kronor ($24.7 billion), a roughly 20 percent drop.
But not to worry, those who top the list of Sweden’s richest individuals aren’t likely to have any trouble paying the bills, despite the slump in their net worth.
Topping the list of Sweden’s wealthiest individuals again this year is 82-year-old Ingvar Kamprad, founder of the Ikea household furnishings giant.
Even though his net worth has dropped by about 80 billion kronor since 2007, the remaining 450 billion kronor is nearly five times the net worth of Sweden’s second richest person, putting Kamprad in a class by himself when it comes to wealthy Swedes.
And just who is the comparably modestly well-off individual in the number two spot?
It’s none other than 60-year-old Stefan Persson, heir of yet another well known Swedish retailing giant, Hennes & Mauritz (H&M), which, like Ikea, is built on a successful formula for bringing designer goods — in this case clothes — to the masses.
Persson’s father Erling founded H&M in 1947, but since taking over primary ownership of the firm in 1982, the younger Persson has amassed a fortune now estimated to 90.5 billion kronor.
Sweden’s third richest person is the king of packaging, 82-year-old Hans Rausing, founder of the Tetra Pak packaging giant.
The ubiquitous dairy and juice packages have been a staple in grocery stores and refrigerators for decades, and have helped Rausing achieve a net worth estimated at around 70 billion kronor, but down 24 billion from last year.
The highest ranked woman on the list is 64-year-old Antonia Ax:son Johnson, who now chairs the board of the investment company started by her great grandfather, Axel Johnson, in 1873. Although Johnson’s net worth fell by about 13 billion kronor, she still has 35 billion to spare.
Other notable names on Sweden’s rich-list include several other members of the Rausing, Persson, and Kamprad families; Bertil Hult, founder of the EF language education group (9th place, 12 billion kronor); real estate mogul Fredrik Lundberg (10th place, 11.8 billion); the 31-year-old board chair of the Kinnivek investment group Cristina Stenbeck (31st place, 3.1 billion), as well as her siblings; several members of the Lundin family from the eponymous petroleum and mining company; and Skype founder Niklas Zennström (75th place, 1.2 billion).
Also worth noting are some of the well-known names who have dropped out of the ranks of Sweden’s billionaires since 2007, including former ABB director Percy Barnevik, Ericsson CEO Carl-Henric Svanberg, and Eva Bonnier of the Bonnier publishing group, although several of her relatives remain on the billionaires’ list.
Perhaps the most conspicuous omission in the eyes of many observers of Sweden business elite is the absence of any Wallenbergs, long one of the country’s most influential families.
As the family that started SEB, one of Sweden’s largest banks, and which has ownership stakes in several major Swedish companies through the Investor holding company, the Wallenbergs would seem to be a shoe-in for any list of Sweden’s richest people.
But in reality, most of the Wallenberg family fortune is tied up in family foundations, which in turn owns stakes in Investor.
“They control their companies through foundations which is where all their money is,” Veckans Affärer reporter Ulf Petersson told The Local.
A quick look at the finances of the Wallenberg foundations make it clear that the family has generated a great deal of wealth over the years. According to 2007 annual reports, the three largest foundations had an estimated value of more than 55 billion kronor.
“Because they can’t simply take money out of the foundations and use it for themselves, we haven’t included it in our [net-worth] calculations,” said Petersson, who helped compile Veckans Affärer list of Swedish billionaires.
Of course, the notoriously low-key Wallenbergs likely aren’t too concerned about being left off the billionaires' list, having learned a thing or two about what it takes to wield influence in Sweden.
“Just because you are the richest doesn’t mean you are the most powerful,” said Petersson.
Methinks Norwegian millionaires will suffer even more (neighboring Norway boasts the world’s highest rate of dollar millionaires per capita):
http://www.freerepublic.com/focus/f-news/1864973/posts
This really brings tears to my eyes....
A kronor here, a kronor there, pretty soon you’re talking serious money.
What do you have against them?
“This really brings tears to my eyes....”
- Life seemed meaningful to me before reading these sad news.
What’s the Swedish equivalent of having to eat rice and canned beans?
lutfisk?
Herring? Reindeer fat?
Dried beans are cheaper.
- Personally, I'm tired of the krona.
Sweden might be a better run economy than the continental ones, but we really ought to join the Euro.
A good argument for doing so is that such a move would immensely enhance the chances of the larger European nations finally starting to get a grip on their own economies.
Having lived in Sweden for 39 years and having read as well as having traveled a bit, I don't hesitate to say my country is better run than places like southern Italy.
You are so right, as usual, Tax-chick. How do "frozen beans" line up on the cost scale?
I don’t have anything against them, I just can’t seem to work up a “give a d*mn” for Swedish billionaires.
“lutfisk?”
- Lutfisk or lutefisk is actually a luxury ordinary Swedes only can afford to eat during Christmas times.
The stinking rich Norwegians eat it more often, but at least we drive Volvo V70s and they drive ordinary Fords:D.
“I don’t have anything against them, I just can’t seem to work up a “give a d*mn” for Swedish billionaires.”
- You have no pity in your heart.
We ate like Mexican peasants for a number of years, before achieving our present comfortable prosperity.
Frozen vegetables, as a rule, cost more than canned vegetables for similar quantities, but they’re usually more nutritious. Frozen beans, except for green beans and such, are sort of a weird concept to me, but I suppose it would be a time-saver, and would avoid the high salt content of canned beans, if salt’s an issue for you.
What do they eat in Sweden, anyway? I think I saw a “Lonely Planet” episode about it once, but I don’t remember any details!
I know...I'm just a typical evil conservative.
“What do they eat in Sweden, anyway?”
- Rich folks eat IKEA meatballs, ordinary people like me dine on IKEA furniture.
Maybe ABBA will have to reunite after all.
LOL!
“Maybe ABBA will have to reunite after all.”
- Bitte nicht!
I would prefer a reunion of Boney M (- straight outta Munich, ja!)
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