LongHaul Posted May 23, 2016 Share Posted May 23, 2016 Anyone have any idea why Italian stock returns have been low since 2004? I think these yearly returns are only price and may not include dividends. http://www.1stock1.com/1stock1_804.htm Link to comment Share on other sites More sharing options...
morningstar Posted May 23, 2016 Share Posted May 23, 2016 To start with, Italy's real GDP is down several percent over that period. Link to comment Share on other sites More sharing options...
Poor Charlie Posted May 23, 2016 Share Posted May 23, 2016 Italian securities (bonds and stocks) have always been poor performers. TSR in real terms since - 1965 Equities: 1.3% Bonds: 3.3% 1900 Equities: 1.9% Bonds: (1.2%) Source - https://publications.credit-suisse.com/tasks/render/file/?fileID=AE924F44-E396-A4E5-11E63B09CFE37CCB page 46 Link to comment Share on other sites More sharing options...
Jurgis Posted May 23, 2016 Share Posted May 23, 2016 Exor should switch listing asap. Link to comment Share on other sites More sharing options...
eclecticvalue Posted May 23, 2016 Share Posted May 23, 2016 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. Link to comment Share on other sites More sharing options...
plato1976 Posted May 24, 2016 Share Posted May 24, 2016 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. Link to comment Share on other sites More sharing options...
LongHaul Posted May 24, 2016 Author Share Posted May 24, 2016 Italian securities (bonds and stocks) have always been poor performers. TSR in real terms since - 1965 Equities: 1.3% Bonds: 3.3% 1900 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. Link to comment Share on other sites More sharing options...
matjone Posted May 26, 2016 Share Posted May 26, 2016 I was curious about this as well. I can't get that document on Italian stock returns to load. Those are total returns aren't they? Maybe Gio will chime in with some explanation. Wikipedia entry - https://en.m.wikipedia.org/wiki/Economic_history_of_Italy Link to comment Share on other sites More sharing options...
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