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Anyone have any idea why Italian stock returns have been low since 2004?


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why should a conglomerate gets a premium

I think they usually trade at a discount (though not as big as exor) except some rare exceptions like Berkshire (for a reason)


Exor should switch listing asap.


That would close the discount and I think the company would get a premium valuation in-line with the conglomerates.

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Italian securities (bonds and stocks) have always been poor performers. 


TSR in real terms since -



Equities: 1.3%

Bonds:  3.3%



Equities: 1.9%

Bonds:  (1.2%)


Source - https://publications.credit-suisse.com/tasks/render/file/?fileID=AE924F44-E396-A4E5-11E63B09CFE37CCB  page 46


Thanks for the data Poor Charlie.


Even Spain did 4.7% real equity returns from 1965 - 2014. 


I have a few random thoughts on this.


1.  Perhaps the Italian Indexes were dominated by weaker businesses - ie banks, etc.

2.  Higher Inflation

3.  High corruption


I really don't know though.  If anyone has any other thoughts as to underlying causality feel free to brainstorm.  I think it is worth studying.





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