Most investors know that investing in stocks comes with a risk of losing money, but I wanted to know exactly how much money I could have lost if I had bet on the wrong (Swiss) horses.
To find out, I first took the ten Swiss companies which had the poorest performance in the 2022 Swiss stock market study. Of course, I could have made a total loss if I had invested in a company which disappeared altogether. The study only included companies that stayed alive from 2002 until 2022, and not companies which went bust in the meantime.
I had to minus the study’s worst performer, Perfect Holding, as it no longer exists in its previous form now in 2023. In exchange, I added the Adecco Group, which took eleventh place in the study.
I then calculated how much a 1000-franc investment made on February 28, 2002 would be worth on March 21, 2023. In addition to the differences in stock prices, I also accounted for dividends paid out across the full investment term (gross dividends without reinvestment). Lastly, I converted those figures into plain francs, rounding centimes to the nearest whole franc.
This is how much my 1000 francs invested in 2002 would be worth today, just over 21 years later:
1. Credit Suisse Group – 52 francs left
Once the second-largest Swiss bank, Credit Suisse yielded a -94.75 percent loss for its shareholders, accounting for dividends and share prices. If I had bought 1000 francs of Credit Suisse stock on February 28, 2002, I would have lost 948 francs of my capital by March 21, 2023, with just 52 francs left over.
2. Kudelski – 67 francs left
Kudelski, a cybersecurity company listed on the SIX Swiss Exchange, yielded a negative -93.31 percent return (stock price plus dividends) over the observation period. Each 1000 francs invested in Kudelski stock would have a final value of just 67 francs today. My loss would be 933 francs.
3. Airesis – 138 francs left
Accounting for dividends and stock value, investments in the stock of Airesis, a listed Swiss holding company which owns sporting goods brands like Le Coq Sportif and Movement, delivered a -86.15 percent return. Had I bought stock worth 1000 francs in early 2002, I would have lost 862 francs between then and now. I would have just 138 francs left to show for my investment.
4. Mikron Holding – 177 francs left
Over the period between February 28, 2002, and March 21, 2023, the stock of Swiss machine maker Mikron delivered a -82.30-percent negative return﹘taking the share price and gross dividends into account. My 1000 francs of stock would have lost 823 francs in total investment value by the end of the term, dwindling down to just 177 francs.
5. Von Roll Holding – 267 francs left
Swiss industrial giant Von Roll returned -73.31 percent in investment value between 2002 and 2023, accounting for capital gains and dividends. That means a 1000-franc stock investment in 2002 would have left me with just 267 francs on March 21, 2023. I would have had to write off 733 francs.
6. Valartis Group – 330 francs left
SIX-listed financial and real estate services provider Valartis returned -66.99 percent on stock investments over the 21-year-plus term. Each 1000 francs invested in Valartis stock would be worth just 330 francs at the end of my investment term. I would have lost 670 francs.
7. Tornos Holding – 374 francs left
Moutier-based precision-machinery manufacturer Tornos returned a negative -62.64 percent (between the end of February, 2002, and today) in stock value and dividends, shrinking a 1000-franc investment down to just 374 francs – a 626-franc write-off.
8. Adecco Group – 571 francs left
The Adecco Group, one of the world’s largest employment agencies, returned -42.92 percent in dividends and share value between February 28, 2002 and March 21, 2023. Had I invested 1000 francs in Adecco stock 21 years ago, I would have lost 429 francs of my investment, leaving me just 571 francs today.
9. Ascom Holding – 608 francs left
Ascom, once a leader in the Swiss telecommunications technology sector and now a manufacturer of specialized telecom devices, returned -39.19 percent in dividends and capital gains. That translates into a 392-franc loss. Had I invested 1000 francs in Ascom shares in 2002, that money would have since dwindled down to just 608 francs.
10. UBS Group – 635 francs left
The biggest Swiss bank returned -36.55 percent to shareholders in stock value and capital gains since February 28, 2022. If I had bought 1000 francs of UBS stock 21-years-and-3-weeks ago, my investment would have been worth just 635 francs on March 21, 2023. I would have lost 365 francs.
How can you avoid losing money on stock investments?
Because there is no sure way to know in advance how a company will perform, investing in individual stocks requires a high level of risk tolerance and a high risk capacity.
Diversification – spreading your investment capital across many different companies – is the only way to minimize the risk of loss. The moneyland.ch historical return calculator shows that the Swiss Performance Index (SPI), as a whole, gained 5.59 percent in value every year, on average, between 2002 and 2022. Every 1000 francs invested in the SPI (as a whole) back in 2002, was worth 3134 francs at the end of 2022.
The easiest way to diversify your investment is by buying shares in low-cost exchange-traded funds (ETFs) or index funds which track the index you want to invest in.
More on this topic:
How much money could you make with Swiss stocks?
Compare Swiss stock brokers now
Useful tips for investing in stocks
How to choose the right investment fund
Swiss stock market study 2022
Historical return and interest calculator
