Buy Hold Sell: 5 undervalued founder-led stocks

It's well-known that founder-led companies outperform those led by hired suits. In fact, in 2016, Bain & Company found that founder-led companies listed on the S&P 500 performed 3.1 times better than their peers over a 15-year period (see below).

But why is this?

Having developed a database of all public companies in global stock markets and tracking their performance over 25 years, Bain & Company found that the companies most successful at maintaining profit growth over the long term disproportionately were companies where the founder was still running the business, still involved on its board, or where the principles the founder originally put in place persisted.

That's because founders possessed these three traits:

Business insurgency - A unique feature or capability that gives a business purpose, waging war on industry norms on behalf of its clients.
A "front line obsession" - A focus on the details at the front line and culture.
The "owner's mindset" - Possessing the speed to act quickly and taking personal responsibility for risk and cost.
So, which founder-led stocks are flashing buy signals on the ASX?

In this episode, Livewire's James Marlay was joined by Blackwattle's Tim Riordan and Auscap's Will Mumford to find out.