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.
The article Why We Love Founder-Led Companies originally appeared on Fool.com.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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