⁍ Technology companies led by their founders have been the standout winners in share price performance and profit growth this year.

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⁍ Major founder-led tech firms have seen their share prices double so far this year, comfortably beating a 7.8% gain for the S&P 500 index.

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⁍ They have also outperformed rival tech firms led by hired managers, enriching investors and adding billions of dollars to the wealth of the founders themselves.

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– Technology companies led by their founders have been the best performers in share price performance and profit growth this year, according to a Reuters analysis. Major founder-led tech firms have seen their share prices double so far this year, comfortably beating a 7.8% gain for the S&P 500 index. They have also outperformed rival tech firms led by hired managers, enriching investors and adding billions of dollars to the wealth of the founders themselves, including Amazon’s Jeff Bezos, Netflix’s Reed Hastings, and Tesla’s Elon Musk. Reuters notes that founder-led tech firms have seen growth of around 30% over the past five years versus 6.7% for companies led by other managers. Founder-led tech firms have a history of higher returns and faster recovery in the aftermath of a financial crisis. For instance, in the last bull cycle Amazon’s shares surged fifty-fold, while those of Netflix’s rose by 100 times.