Why Family Business Stocks Are Better – Why They Outperform (Owner-Operated Businesses Have Skin In The Game)
Why do family businesses outperform? Family-owned businesses outperform the main stock indices. They outperform because they have skin in the game, attract better shareholders, have conservative leverage, and thus become antifragile, they do less risky M&A, have long industrial know-how, and do smarter capital allocations. They are owner-operated businesses and their interests are aligned with…