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A Taste of Honey: How Long-Term Investing Turned 20,000 Francs Into 2 Million.

  • Aug 7
  • 3 min read

Updated: Aug 19


A Taste of Honey

What if a single decision back in 1982 had turned into a fortune worth over 2.5 million francs today?

Just patience and a company with a stable dividend policy are enough to demonstrate that quiet strategies can often be the most effective.

A 20,000 Swiss franc investment in stock XY in 1982 with all dividends reinvested, would be worth a fortune today. We take a look at the numbers and what investors can learn from them.


Price and dividend development of a dividend share from 1983 to 2023 in
5-year intervals.
Invested capital at the end of 1982 - CHF 20,000

Year

Share price in CHF

Dividend in CHF

Number of shares

Capital year-end

Dividend reinvested this year

1982

2.30





1983

3.02

0.109

8,696

26,261

314

1988

3,956.69

0.175

10,260

68,640

268

1993

12.83

0.235

11,514

147,731

211

1998

29.90

0.380

12,678

379,071

161

2003

30.90

0.720

13,778

425,751

321

2008

41.60

1,400

15,522

645,701

522

2013

65.30

2,050

18,343

1,197,782

576

2018

79.80

2,350

21,236

1,694,616

625

2023

97.51

2,950

24,060

2,346,063

728


The silent power of growth

he table illustrates how a CHF 20,000 investment in stock XY could have evolved since 1982, assuming consistent reinvestment of dividends. It documents various points in time, including the share price, dividend amount, number of shares held, and the theoretical portfolio value at year-end.

In 1982, the price of share XY was CHF 2.30 . Accordingly, approximately 8,700 shares could be purchased for CHF 20,000 . In the following decades, the price rose steadily, reaching over CHF 97 in 2023.

The analysis becomes even more relevant when dividends were reinvested in new shares. This reinvestment had a direct impact on the number of shares held and thus on the total value of the investment.

The data at a glance:


  • In 2023, the theoretical portfolio value would have been CHF 2,346,063 .
  • The number of shares increased to 24,060 through reinvestment.
  • The annual dividend per share was recently CHF 2,950 , which corresponds to a distribution of approximately CHF 71,000 .

This model calculation demonstrates the effects of long-term price performance in conjunction with the reinvestment of dividends. The underlying figures are based on published historical data and serve to illustrate a possible capital development with full reinvestment and a holding period of 40 years.

Why dividends play a central role


Dividends are often considered "boring." Yet it is precisely this regularity that ensures stable growth. The case described above demonstrates that even in times of volatile markets or economic crises, a strong dividend policy remains a reliable driver of returns.

What investors can learn from this


  1. Early entry pays off: The compound interest effect only unfolds its full effect over long periods of time.
  2. Discipline beats market timing: Those who invest consistently do not need perfect entry points.
  3. Dividends as a source of income: Dividends can provide a steady income in retirement or contribute to further wealth accumulation beforehand.
  4. Quality stocks make the difference: Stock XY is not a speculative investment, but an example of a robust business model with a global presence (even if we don't mention the name here).

Conclusion: The Silent Power of Growth


The example of stock XY illustrates how capital can grow over decades with patience, stable dividends, and reinvestment. Early entry pays off.
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