13-year-olds who became stock winners – development for different generations

A hypothetical investment of 10,000 kronor made at age 13 could grow to significantly different amounts by age 29, depending on the generation, according to an analysis by the comparison site Zmarta. The study, which reinvested dividends, found that Generation X, particularly those born between 1965 and 1972, experienced the most substantial returns.

For individuals born between 1965 and 1972, their initial 10,000 kronor investment, held from 1981 to 1997, grew by an average of 2,820 percent, resulting in nearly 292,000 kronor. This period coincided with the IT boom and strong belief in the transformative power of the internet, which fueled significant gains for technology and telecommunications companies like Ericsson.

However, the dot-com crash in 2001, which saw the Stockholm Stock Exchange plummet by nearly 70 percent, negatively impacted later investors. For the latter part of Generation X (born 1973-1980), the average return was lower at 477 percent. The study also highlighted that the "war generation" (born 1901-1927) experienced the weakest development, largely due to the 1929 U.S. stock market crash and the subsequent Kreuger crash in Sweden.

Ola Söderlind, a household economist at Zmarta, explained that formative years, like age 13, are crucial as individuals are more open to influence, whether in music, economics, or other areas. This early exposure to market upswings can foster greater optimism about stock investments later in life.

The calculations were based on Affärsvärlden's general index, including dividends, with additional data from Daniel Waldenström's "Final Stock Data" and Investing.com. The analysis underscores the significant impact of market timing and generational experiences on long-term investment growth.