Founder-run companies

https://www.fool.com/investing/2017/11/19/is-this-the-easies…

"…what if there was a simple way to outperform the market? According to multiple studies, there is: just invest in founder-led companies, as they tend to outperform their peers. According to a study from Purdue’s Krannert School of Management, the data suggests ‘founder CEOs are more effective and efficient innovators than professional CEOs’ and those innovations ‘create more financial value’ than those from professional CEOs.

“Another study from global consulting firm Bain and Company, by way of the Harvard Business Review, found that over the years 1990-2014, ‘an index of S&P 500 companies in which the founder is still deeply involved performed 3.1 times better than the rest.’”

I think a lot of the stocks popular here bear this out. Ubiquiti and Shopify, to name two off the top of my head.

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This was certainly true of IBM, it prospered under the Watsons but it became second rate about a decade or two after Watson Jr. retired. IBM was my “alma matter” so to say, that’s where I had my first job and where I got an education in data processing.

Denny Schlesinger