Why We Love Founder-Led Companies

In the video below, Playing to Win co-author Roger Martin talks with Fool analyst Brendan Byrnes about the benefits of investing in companies that are headed by their founders.

Roger says he loves founder-led companies. But there's also a bias about which founder-led companies we learn about, he says. Investors don't really hear about the lousy founder-led companies that fail, just the good ones that succeed.

That aside, founders of those successful companies have usually developed "where-to-play" and "how-to-win" strategies, Roger says. And while those strategies are sometimes carried on by successors, those new, professional managers can also come in with a belief that success will go on forever.

Strategies must be re-evaluated constantly, and professional managers sometimes don't see that as a core part of their job, he says.

To watch the full interview with Roger Martin, click here.


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