We believe that investing with founders gives you an edge in the stockmarket. Behind every stock there is a company and behind every company are people. Why not invest with the best like Jeff Bezos and Mark Zuckerberg? Amazon and Facebook have outperformed for years they seem to be able to take risks and make investments most companies wouldn't be allowed to. We believe a main reason is the founders long term vision. Thankfully Bain & Company have quantified the out performance of founder led firms, you can see below that they beat the index by 3.1x. Bain's study found that when the founder was CEO the company generated 31% more patents, were more likely to make investments and had a willingness to take risks to better position the company for the future. Founders treated everything like their own money because it was with large stakes in the business and hated bureaucracy. Their long term view meant that overtime they were positioned for change compared to management with shorter time horizons (average S&P500 CEO tenure 9.9 years in 2014.)


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James Marlay

Great chart, I often liken this to owner operated businesses - the passion and focus on the customer experience is key.