study

CONREN study confirms:

Stocks of family businesses are the better investments

The COVID-19 pandemic has shown once more that family run businesses are particularly crisis-resistant and know how to use times of distress to strengthen their market position.

Especially, their long-term strategic focus  makes a big difference. “Enkelfähigkeit” (the overarching objective of family entrepreneurs to safeguard and grow the company for future generations”) stands out and makes their stocks better investments. The company is their life’s work and thus much more than just another line on a CV. Their own money and reputation are at stake.

stocks of family businesses have clearly outperformed other stocks in the past

performance of stocks of family businesses in Europe versus benchmark

Source: CONREN, Bloomberg

Our universe of European family business stocks with a market capitalisation of over € 200 Mio. has outperformed the benchmark by 105 per cent in the period January 2007 until June 2021. This translates into approx. 5% of outperformance per year.

Legal notice: Past performance is not an indicator of future performance. Future performance is neither expressly nor implicitly guaranteed or promised.

Source: Bloomberg – CONREN Research

– Why are family businesses the better investments?
– Why are they so crisis-resistant and an anchor in times of uncertainty?
– How to invest in stocks of family businesses?

The findings of this study are being applied to our portfolio management on a daily basis when investing in family businesses.