started in 1901, Nobel Prize has been distributing money, but it has not been completed. The editor also knows that there is a team behind it, but how is it done and what is the story. Today let’s analyze together to see why this Nobel Prize can’t be distributed, and see if this Nobel is really that rich!
The Nobel Prize is based on a Swedish chemist Nobel 's will in 1895 established the Nobel Foundation with 94% of his total assets, or 31 million Swedish krona (equivalent to 2.2 billion yuan today) , to manage the inheritance and bonuses. The Nobel Prize originally established only five awards, including: Physics Prize, Chemistry Prize, Peace Prize, Physiology or Medicine Prize, and Literature Prize, aiming to recognize those who have "made the greatest contribution to mankind" in physics, chemistry, peace, physiology or medicine, and literature. Later the Swedish Central Bank established the Nobel Prize in Economics in 1968 to commend those who have made outstanding contributions in the field of economics.
ranks first, with a large bonus base. The initial prize for the
Nobel Prize was 31 million Swiss francs, about 9.2 million U.S. dollars! This was in 1901, equivalent to 360 million U.S. dollars today, which is still an astronomical figure in modern society.
Secondly, why have the bonuses not been paid out after more than 100 years?
In fact, the Nobel Prize changes every year, and it does not increase year by year. It can be divided into three stages:
The first stage: 1901-1953:
The foundation initially adopted a relatively conservative investment method to ensure the safety of the principal. Mainly deposits and government bonds, so the yield is low.
Taking 1901 as an example, the principal of 9.2 million US dollars and the interest of 200,000 US dollars were calculated, and the annualized rate was only 2.17%!
20÷920×100%=2.17%
Later, due to the continued depreciation of the Swedish krona, and Sweden’s collection of funds The income tax increased from 10% to 20%, causing the bonuses to continue to decrease. The lowest year was 1921, when the bonus was only 110,000 Swiss francs!
The second phase: 1953-2000:
In 1953, the foundation assets only remained at 3 million US dollars. However, in 1946, the Swedish Parliament agreed that the foundation should enjoy tax-free treatment. In 1953, the United States also stipulated that the Nobel Foundation would enjoy tax-free treatment when investing in the United States. Since then, the foundation's burden has been greatly reduced, and it has entered a period of asset appreciation!
Since then, the foundation has begun to get involved in stock and real estate investments. By the 1980s, due to the rapid growth of the global stock market and the impressive growth in real estate investment, the foundation's asset growth entered a golden period until 2000!
The third stage: 2000-present:
Starting from January 1, 2000, the foundation allowed the income from asset investment to be used for awarding awards. In the past, only interest and dividends could be used for awarding awards. This allows the foundation to invest a higher proportion of its assets in the stock market.
However, investing in the stock market is always risky. From 2008 to 2011, the global stock market plummeted, and its stock investment also lost about 19 million Swiss francs, which reduced the bonus by 20%! Since 2012, the bonus has been reduced to 8 million Swiss francs, and it was not raised again until 2017!
Although the foundation's investment is not all smooth sailing. However, over the past 120 years, compared with the initial 31 million Swiss francs, the steady investment strategy has also increased the value of the fund by hundreds of times!
I wonder what friends who have recently purchased the Great Country Fund think about it?
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-