Graphic: Founder-led firms outpacing CEO-led ones in market recovery

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Technology companies led by their founders have been the standout winners in share price performance and profit growth this year, beating companies led by other managers, according to a Reuters analysis.

Amazon founder and CEO Jeff Bezos laughs as he talks to the media while touring the new Amazon Spheres during the grand opening at Amazon's Seattle headquarters in Seattle, Washington, U.S., January 29, 2018. REUTERS/Lindsey Wasson/File Photo

Founder-led tech firms have a history of higher returns and faster recovery in the aftermath of a financial crisis. For instance, in the last bull cycle Amazon’s shares surged fifty-fold, while those of Netflix’s rose by 100 times. With many companies’ operations hit by the COVID-19 pandemic, investors are scouring for firms likely to recover the quickest. Analysis of capital expenditure plans suggests why investors think founder-led companies might have an edge.In the first half of this year, founder-led companies have seen a 20% growth in capex, whereas spending on future growth at companies led by others has fallen 2%.

 

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shivamsharma you are in a good space 😀

Not for Harold Goddijn’s tomtom

Founders gave a vision...CEO’s gave a financial incentive

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