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.
Profit growth has outperformed too, with founder-led tech firms seeing growth of around 30per cent over the past five years versus 6.7per cent for companies led by other managers.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.
This year, the top 400 founder-led stocks from all sectors have registered an average share price gain of 58.4per cent versus a 10per cent return for the top 400 stocks led by others. According to Refinitiv data, founder-led firms are expected to post average net income growth of 22.8per cent in the next three years, compared with 7.1per cent growth for non-founder led companies.https://fingfx.thomsonreuters.com/gfx/mkt/xklpymdqwpg/Founderper cent20ledper cent20companies'per cent20earningsper cent20growthper cent20andper cent20performanceper cent20.jpg