“Our favourite holding period is forever.”

Warren Buffett, Berkshire Hathaway Letter to Shareholders, 1988

FAMILY FORTUNES

Capitalise on Centuries-Old Family Legacies

Family-owned businesses, a form of ownership often overlooked, are the lifelines of our economy. Their reach extends from our local corner shops to the millions of small and midsize enterprises that underpin economies worldwide. Many of the world’s most recognized brands are owned and controlled by families, including BMW, Samsung, Wal-Mart Stores, Heineken, and LVMH.

Family businesses account for half of global GDP and employment. Amazingly, the largest 750 family businesses in the world generate combined revenues of $9 trillion each year and provide jobs to over 30 million people. In addition to their economic power, family businesses are the most trusted form of business, garnering a trust score of 67 percent versus 58 percent for publicly-owned entities.

Contents

  • Introduction - Family Companies Outperform

  • The Secrets of Success in Family Businesses: An Analysis of Outperformance

  • Seven Lessons Every Investor Can Learn from Family Businesses

  • Warren Buffett: From Family Advice to Family Companies

  • The Power of Legacy: Family Businesses and the Importance of Brand Names

  • Walmart: From Small Town Values to Global Value

  • Estée Lauder: A Timeless Beauty Empire Carved by Family Values

  • Heineken: Crafting a Global Brand, One Generation at a Time

  • Hermès: Stitching Success through Family Control

  • L'Oréal: Investing in Beauty Over Generations

  • Ferrari: Sitting in the Driving Seat

  • LVMH: The Crafting of a Luxury Empire and a Legacy of Succession

  • Family Holding Companies

  • Action Points