Study: How Profitable Is It to Invest in Bucharest Stock Exchange?

Bucharest Stock Exchange – BVB is Romania’s stock exchange, located in Bucharest. Established in Bucharest in 1882, closed during communism, and re-opened in 1995, BVB reached a market cap of EUR 42.3 billion in 2023.

A recent story on how profitable it is to invest in BVB sparked investors’ imaginations. Ziarul Financiar, one of Romania’s most reputable financial newspapers, published a revealing study to answer this question: is it profitable to invest in BVB?

In short, according to the study, if one had invested EUR 20 a month since 1998 in the leading indices of the Bucharest Stock Exchange, one would’ve accumulated a small fortune of EUR 51,000. Is it too little for some of you? Let’s compare it to other possible options.

The same small investment of EUR 20 a month would’ve got the investor only EUR 6,050 if kept in the mattress, as most people do. Also, the same investment, placed in a bank, would’ve got EUR 12,100.

In other words, banks would’ve doubled the amount of money saved, but investments in Bucharest Stock Exchange would’ve brought eight times more. Let’s be clear: the math shows that stock investments yield higher profits in Bucharest even compared to the situation when it was invested in S&P 500. Another aspect to consider is that the investment was calculated if money was invested in the main index of BVB while other stocks were offering better margins.

This post is not financial advice, and we are not financial advisors. We just liked the study and published it to our readers. Experts say investing in stock is safer than in crypto or other options, so Bucharest Stock Exchange could prove an option for those who want to start saving and investing. After all, EUR 20 a month is worth losing if investments aren’t going as planned, right? You know what they say – invest only the money you can lose. From this perspective, Ziarul Fiananciar’s study is more than welcome to clarify this aspect.