Studies show that family-controlled public companies tend to perform better than most because the owners are more committed to their businesses and they take on less debt. But that only works if the families have enough stake in the company.
Which is why I was surprised while reading Dethroning the King, a book written by Julie Macintosh chronicling the 2008 takeover over Anheuser-Busch by InBev. Amazingly, the Busch family held sway over Budweiser with very little skin in the game, owning less than 5% of the company.
But the book got me thinking, who are some of the best family-controlled public companies? Here’s a list of my top picks, using specific criteria:
- The family must have an economic interest of at least 20% of the company and more than 50% of the votes.
- Two or more family members must sit on the board.
- The company’s stock must have achieved a 10-year annualized return at least 25% higher than the S&P 500.