John Hjorth Posted August 29 Share Posted August 29 This is a report by the consultancy company McKinsey & Company, as a collaborative effort among five authors, representing the views of McKinsey’s Private Equity & Principal Investor’s Practice and its Family-Owned Business Special Initiative. So it's actually intended, directed and adressed at the companys clients in those two departments. I think there for us as DIY investors and stock pickers as members of CoBF there is a lot of useful stuff touched in this piece, that I think many of us may find interesting and worth the readers time to study. Based on the report It's possible - as a DIY investor to deduct which criteria to assess and dive into when looking at such family controlled groups / companies, that appear from a rear viewing perspective appear to be long term successful. I think the sample analysed and the underlying dataset may be of interest, but likely access to that is based on McKinsey client relation. I really can't define or for my self explain how it is for my personal part, I can just conclude, that I after now more than a decade in investing have ended up buying a lot of such family controlled and well diversified stuff, and as years have passed, involved as long-only, long-term buy-and-hold, I have seen those positions have been pleasant experiences in most cases, with satisfactory returns, and very rare disapointments or negative surprises along the way, in short : how I like it most. In many my cases, such stuff has been conglomerates, and thereby by their nature quite complicated, which I like, so there is always something interesting to study further, as the basic pro-business person I am, deep down in my roots. So I would like to share the report here and discuss it with those interested, who may want to discuss it. Link to report, and attached. Mc Kinsey Co. - The-secrets-of-outperforming-family-owned-businesses-how-they-create-value-and-how-you-can-become-one - 20240829.pdf Link to comment Share on other sites More sharing options...
Spooky Posted August 29 Share Posted August 29 Thanks for sharing. I'm curious. Link to comment Share on other sites More sharing options...
73 Reds Posted August 29 Share Posted August 29 1 hour ago, John Hjorth said: This is a report by the consultancy company McKinsey & Company, as a collaborative effort among five authors, representing the views of McKinsey’s Private Equity & Principal Investor’s Practice and its Family-Owned Business Special Initiative. So it's actually intended, directed and adressed at the companys clients in those two departments. I think there for us as DIY investors and stock pickers as members of CoBF there is a lot of useful stuff touched in this piece, that I think many of us may find interesting and worth the readers time to study. Based on the report It's possible - as a DIY investor to deduct which criteria to assess and dive into when looking at such family controlled groups / companies, that appear from a rear viewing perspective appear to be long term successful. I think the sample analysed and the underlying dataset may be of interest, but likely access to that is based on McKinsey client relation. I really can't define or for my self explain how it is for my personal part, I can just conclude, that I after now more than a decade in investing have ended up buying a lot of such family controlled and well diversified stuff, and as years have passed, involved as long-only, long-term buy-and-hold, I have seen those positions have been pleasant experiences in most cases, with satisfactory returns, and very rare disapointments or negative surprises along the way, in short : how I like it most. In many my cases, such stuff has been conglomerates, and thereby by their nature quite complicated, which I like, so there is always something interesting to study further, as the basic pro-business person I am, deep down in my roots. So I would like to share the report here and discuss it with those interested, who may want to discuss it. Link to report, and attached. Mc Kinsey Co. - The-secrets-of-outperforming-family-owned-businesses-how-they-create-value-and-how-you-can-become-one - 20240829.pdf 1.28 MB · 14 downloads Great article! For me, poignant factors that are transferable to investment in non FOB public companies are (1) superior capital allocation; (2) innovation; and (3) a long term investment approach by management. Link to comment Share on other sites More sharing options...
SharperDingaan Posted August 29 Share Posted August 29 (edited) Interesting reading .... but a couple of caveats. This is just the <5% of successes in both business, and succession; most of that other 95% will have had very different experiences. It is also a very different thing when you're a private vs a public company; as nobody regrets getting out of public reporting and its short-term mindset. Then keep in mind the colourful 5-10% that are very good at what they do; but habitually just happen to be on the wrong side of the law ... lot of generational businesses in there! Personalities also have a lot to do with it. SD Edited August 29 by SharperDingaan Link to comment Share on other sites More sharing options...
Hektor Posted August 30 Share Posted August 30 Thanks @John Hjorth Link to comment Share on other sites More sharing options...
Hektor Posted August 30 Share Posted August 30 22 hours ago, SharperDingaan said: most of that other 95% will have had very different experiences Think PARA Link to comment Share on other sites More sharing options...
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