Family-Run Public Companies

Henry McVey, an equity strategist for Morgan Stanley, researched several family-run public companies. His findings were that these companies have done well for the companies investors. He found that the 63 companies in the S&P 500 that would fall into the category have outperformed the index over the past year, 3 years, and 5 years.

Most important for investors were his findings that companies where the family members did not have any more influence than the average investor performed the best. Next were the stocks where family members helped steer the company, but still held the same share class as average investors. Finally the worst performing of the groups were the family's that had super-voting shares. The last group also underperformed the index also.