Nobel Prize money has not run out for more than a century thanks to an outstanding investment strategy

In 1895, chemist Alfred Nobel willed most of his 31 million Swedish kronor fortune to establish a fund to award Nobel Prizes to people who had made outstanding contributions to humanity. The Nobel Foundation was officially established in 1900 a year after his death, and the first awards ceremony took place in 1901.

Initially, this amount was only enough to maintain operations at a modest level, with each prize worth about 150,000 krona (Swedish currency). But more than a century later, the fund's total assets have increased nearly 200-fold, reaching more than 61 billion Swedish krona (equivalent to about 46 trillion VND), making this fund one of the world's most successful non-profit organizations in financial investment.

The Nobel Foundation's Money-Making Journey

In its early years, the Nobel Foundation invested only in bonds and safe assets, with a modest return of 2-3% per year. This overly cautious investment approach caused the real value of the prize money to plummet. By 1945, the amount of a Nobel Prize was less than a third of its original amount.

The turning point came in the 1950s, when the Swedish government allowed the fund to expand its investments into stocks and real estate. This diversified the portfolio, helping the fund's assets grow strongly during periods of stock market growth, especially during the bull market of the 1980s.

In 1981, each Nobel Prize was worth just 1 million krona. By 2001, this had increased tenfold to 10 million krona. Although the foundation has occasionally been hit by financial crises, such as in 2011 when it had to reduce the prize money to 8 million krona due to stock market losses, it has since recovered quickly thanks to its flexible investment strategy.

Since 2017, the prize money has increased again to 9 million krona, and by 2023, the Nobel Foundation has decided to raise the record prize to 11 million krona per prize, equivalent to more than 2.8 billion VND. This level will continue to be maintained until 2025, marking the highest value in the more than 120-year history of this prestigious award.

Currently, the Nobel Foundation's investment portfolio is fairly well-distributed: more than 50% in stocks, 25% in hedge funds, 10% in real estate and infrastructure, the rest in bonds and fixed assets. Thanks to that, the fund achieved a profit of nearly 9% in 2020, helping to maintain long-term financial stability.

From the legacy of a scientist more than a century ago, the Nobel Prize money today is not only a reward for human intelligence and creativity, but also a testament to the excellent financial management ability that helps Alfred Nobel's legacy continue to generate profits through each generation.

Source: https://baonghean.vn/tien-thuong-giai-nobel-hon-mot-the-ky-van-khong-het-nho-chien-luoc-dau-tu-sinh-loi-vuot-troi-10307849.html