CKHUY - All In The Family: The Outperformance Of Family Conglomerates
A growing body of evidence indicates that organizations with an engaged group of controlling shareholders, such as family-led businesses, will outperform market averages over the long-term.
In my view, the biggest reason for that outperformance is a more natural and better system of corporate governance that occurs within family firms.
Ironically, many family-led conglomerates which exist as vehicles to manage the family's wealth trade at persistent discounts to net asset values. There are some good reasons for this discount and it is likely to persist in some form into the future. Nevertheless, when discounts become