Family owned companies outperform companies where CEO thinks he is the owner
My take family business don't issue tons of new shares and that is a big discipline. Professional CEO's are always asking new capital and that is very dillutive and permits big empire building and great visions.
less vision and more incremental apparently is best.
From Quartz:
Whether it’s a first-generation family start-up or a fifth-generation multi-national, family businesses outperform consistently. In particular, Non-Japan Asia and Central America are seeing young, dynamic family businesses bursting onto the scene in the emerging tech sector, while performance (although diminishing over time), remains strong in Europe and the US for older, more resilient businesses. This can be attributed to a tendency to be conservative in nature, minimizing risk where possible, giving stamina to outlast their more volatile competitors with the presence of mind to carefully balance the books.
The bottom line: Family- and founder-owned companies are outperforming their peers because they’re focused on the long-term. Not every company can operate like family businesses, but more companies can think like them.
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