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4 Founder-Run Company Stocks That Can Enrich Your Portfolio
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Nobody understands, nurtures, or builds a company better than its founder. Just as a mother tirelessly raises her child, founders shape their businesses with passion, vision, and relentless commitment. Their risk tolerance often surpasses that of professional executives, as they are willing to go the extra mile—learning new strategies, innovating, and making bold decisions to ensure success. Thus, these companies are the true reflection of their founders’ vision and principles.
Everyone is aware of the success stories of visionary founder-owners like Elon Musk, Warren Buffett, Steve Jobs, Jeff Bezos, Mark Zuckerberg and Bill Gates, who have redefined industries, creating trillion-dollar companies that continue to thrive. Some of today’s prominent founder-run companies include NVIDIA Corporation (NVDA - Free Report) , Amazon.com Inc. (AMZN - Free Report) , Meta Platforms Inc. (META - Free Report) , Tesla, Inc. (TSLA - Free Report) , Berkshire Hathaway Inc. (BRK.A), (BRK.B - Free Report) and Netflix Inc. (NFLX - Free Report) .
Initially, others may not relate to a founder’s belief, making it difficult to source funds for the project. The founder often ends up putting personal wealth and savings into such bootstrap companies. If successful, they attract angel investors or raise funds. But it's always the founder-owner whose stake and risk are the highest.
As these companies are born out of a unique idea, they often involve technological innovation. These companies are built from scratch in a way that they can navigate challenges to stay sustainable over the longer term. A prime example is Bank of New York Mellon (BK - Free Report) , the oldest company in the S&P 500, founded by Alexander Hamilton in 1784, which continues to stand tall centuries later.
However, not everything is a fairy tale if a company is run by an owner-founder and not every startup becomes a unicorn. A founder owner often finds it difficult to delegate responsibilities as they are skeptical if others could do justice to the role. Thus they often hold multiple senior/leadership positions and also struggle with succession planning.
Nevertheless, there is strong evidence that founder-led companies tend to perform better over time. Per Bain & Company's in-depth study, an index of S&P 500 companies in which the founder remained deeply involved "performed 3.1 times better" over the 15-year period from 1999 to 2014.
Ready to uncover more transformative thematic investment ideas? Explore 30 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
4 Founder-Run Companies to Have in Your Portfolio
NVIDIA Corporation, with a market cap of $2.698 trillion, is a worldwide leader in visual computing technologies and the inventor of the graphic processing unit (GPU). Over the years, the company’s focus has evolved from PC graphics to artificial intelligence (AI)- based solutions that now support high-performance computing (HPC), gaming and virtual reality (VR) platforms.
Jensen Huang, CEO and founder, believes accelerated computing and generative AI are transforming the computer industry and every other industry worldwide. NVIDIA has already applied AI to build several multi-billion-dollar verticals in gaming, healthcare, automotive and robotics. Its Hopper 200 and upcoming Blackwell GPUs are designed for training and inference of large language models, recommendation engines and generative AI applications.
Datacenter presents a solid growth opportunity for the company. As more and more businesses are shifting toward the cloud, the need for datacenters is increasing. To cater to this huge demand, datacenter operators like Amazon, Microsoft and Alphabet are expanding their operations across the world, which is driving demand for GPUs. NVDA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Netflix, with a market capitalization of $387.7 billion, is considered a pioneer in the streaming space. The company evolved from a small DVD rental provider to a dominant streaming service provider, courtesy of its wide-ranging content portfolio and strong international footprint. Wilmot Reed Hastings Jr. co-founded Netflix with Marc Randolph in 1997 and is the executive chairman of the company.
Netflix has been spending aggressively on building its portfolio of original shows. This is helping the company sustain its leading position despite the launch of services like Disney+ and Apple TV+, as well as existing services like Amazon Prime Video. NFLX carries a Zacks Rank #2.
The company’s focus on streaming regional content has been leading to international growth. Netflix is diversifying its content portfolio and working on projects across India, Mexico, Spain, Italy, Germany, Brazil, France, Turkey and the entire Middle East. The company has launched low-priced mobile plans in India, Indonesia, Malaysia, the Philippines and Thailand. Moreover, the upcoming low-priced ad tier is expected to further drive growth in these price-sensitive regions.
Netflix’s 2025 priorities include improving its core business with more series and films with an enhanced product experience and growth of ads business and developing newer initiatives such as live programming and games. It believes these initiatives should help it sustain healthy growth and thus projects 2025 revenues between $43.5 billion and $44.5 billion and an operating margin of 29%.
Tesla, with a market capitalization of $847.4 billion, has evolved from an electric vehicle (EV) maker to a dynamic technology innovator. Tesla’s CEO, Elon Musk, wants the company to be primarily viewed through the lens of AI and robotics rather than solely as an automotive company.
Tesla's long-term growth prospects still remain strong, driven by its thriving Energy Generation & Storage segment, expansive Supercharger network and AI advancements. The strong reception of Megapack and Powerwall products has placed the Energy Generation & Storage Business on a solid growth path. TSLA’s expansive global supercharging network boasts more than 65,000 connectors. Automotive giants like Ford, General Motors, Mercedes and others have already enlisted to utilize Tesla's North American Charging Standard.
Musk is betting big on Full Self-Driving (FSD) and robotaxis, calling them Tesla’s most valuable future segment. Tesla plans to roll out unsupervised FSD as a paid service in Austin this June, with potential expansion to California and other U.S. regions by year-end, pending regulatory approvals. The Humanoid robot project (Optimus) and the much-awaited Cybercab, a two-seat autonomous vehicle, are expected to hit volume production in 2026. TSLA currently carries a Zacks Rank #3 (Hold).
Meta, with a market capitalization of $1.591 trillion, is the world’s largest social media platform. It is considered to have pioneered the concept of social networking, which is why it enjoys a first-mover advantage in this market. Messenger and WhatsApp are extremely prized possessions of Meta.
Meta believes AI tools will improve business messaging experience and customer support. Mark Zuckerberg, CEO of Meta, believes that “this is going to be the year when a highly intelligent and personalized AI assistant reaches more than 1 billion people, and I expect Meta AI to be that leading AI assistant.” Zuckerberg also expects to build an AI engineering agent that has the coding and problem-solving abilities of a good mid-level engineer.
Meta’s focus on developing a strong footprint in the metaverse will drive its prospects over the long term. Oculus is the result of the company’s ambitious mixed-reality efforts, built on a stack of AI technologies. The multi-year partnership with Rayban-parent EssilorLuxottica is also noteworthy in terms of the development of augmented reality glasses. Meta plans to make huge investments in AI infrastructure over the long term. META currently carries Zacks Rank #3.
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4 Founder-Run Company Stocks That Can Enrich Your Portfolio
Nobody understands, nurtures, or builds a company better than its founder. Just as a mother tirelessly raises her child, founders shape their businesses with passion, vision, and relentless commitment. Their risk tolerance often surpasses that of professional executives, as they are willing to go the extra mile—learning new strategies, innovating, and making bold decisions to ensure success. Thus, these companies are the true reflection of their founders’ vision and principles.
Everyone is aware of the success stories of visionary founder-owners like Elon Musk, Warren Buffett, Steve Jobs, Jeff Bezos, Mark Zuckerberg and Bill Gates, who have redefined industries, creating trillion-dollar companies that continue to thrive. Some of today’s prominent founder-run companies include NVIDIA Corporation (NVDA - Free Report) , Amazon.com Inc. (AMZN - Free Report) , Meta Platforms Inc. (META - Free Report) , Tesla, Inc. (TSLA - Free Report) , Berkshire Hathaway Inc. (BRK.A), (BRK.B - Free Report) and Netflix Inc. (NFLX - Free Report) .
Initially, others may not relate to a founder’s belief, making it difficult to source funds for the project. The founder often ends up putting personal wealth and savings into such bootstrap companies. If successful, they attract angel investors or raise funds. But it's always the founder-owner whose stake and risk are the highest.
As these companies are born out of a unique idea, they often involve technological innovation. These companies are built from scratch in a way that they can navigate challenges to stay sustainable over the longer term. A prime example is Bank of New York Mellon (BK - Free Report) , the oldest company in the S&P 500, founded by Alexander Hamilton in 1784, which continues to stand tall centuries later.
However, not everything is a fairy tale if a company is run by an owner-founder and not every startup becomes a unicorn. A founder owner often finds it difficult to delegate responsibilities as they are skeptical if others could do justice to the role. Thus they often hold multiple senior/leadership positions and also struggle with succession planning.
Nevertheless, there is strong evidence that founder-led companies tend to perform better over time. Per Bain & Company's in-depth study, an index of S&P 500 companies in which the founder remained deeply involved "performed 3.1 times better" over the 15-year period from 1999 to 2014.
Ready to uncover more transformative thematic investment ideas? Explore 30 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
4 Founder-Run Companies to Have in Your Portfolio
NVIDIA Corporation, with a market cap of $2.698 trillion, is a worldwide leader in visual computing technologies and the inventor of the graphic processing unit (GPU). Over the years, the company’s focus has evolved from PC graphics to artificial intelligence (AI)- based solutions that now support high-performance computing (HPC), gaming and virtual reality (VR) platforms.
Jensen Huang, CEO and founder, believes accelerated computing and generative AI are transforming the computer industry and every other industry worldwide. NVIDIA has already applied AI to build several multi-billion-dollar verticals in gaming, healthcare, automotive and robotics. Its Hopper 200 and upcoming Blackwell GPUs are designed for training and inference of large language models, recommendation engines and generative AI applications.
Datacenter presents a solid growth opportunity for the company. As more and more businesses are shifting toward the cloud, the need for datacenters is increasing. To cater to this huge demand, datacenter operators like Amazon, Microsoft and Alphabet are expanding their operations across the world, which is driving demand for GPUs. NVDA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Netflix, with a market capitalization of $387.7 billion, is considered a pioneer in the streaming space. The company evolved from a small DVD rental provider to a dominant streaming service provider, courtesy of its wide-ranging content portfolio and strong international footprint. Wilmot Reed Hastings Jr. co-founded Netflix with Marc Randolph in 1997 and is the executive chairman of the company.
Netflix has been spending aggressively on building its portfolio of original shows. This is helping the company sustain its leading position despite the launch of services like Disney+ and Apple TV+, as well as existing services like Amazon Prime Video. NFLX carries a Zacks Rank #2.
The company’s focus on streaming regional content has been leading to international growth. Netflix is diversifying its content portfolio and working on projects across India, Mexico, Spain, Italy, Germany, Brazil, France, Turkey and the entire Middle East. The company has launched low-priced mobile plans in India, Indonesia, Malaysia, the Philippines and Thailand. Moreover, the upcoming low-priced ad tier is expected to further drive growth in these price-sensitive regions.
Netflix’s 2025 priorities include improving its core business with more series and films with an enhanced product experience and growth of ads business and developing newer initiatives such as live programming and games. It believes these initiatives should help it sustain healthy growth and thus projects 2025 revenues between $43.5 billion and $44.5 billion and an operating margin of 29%.
Tesla, with a market capitalization of $847.4 billion, has evolved from an electric vehicle (EV) maker to a dynamic technology innovator. Tesla’s CEO, Elon Musk, wants the company to be primarily viewed through the lens of AI and robotics rather than solely as an automotive company.
Tesla's long-term growth prospects still remain strong, driven by its thriving Energy Generation & Storage segment, expansive Supercharger network and AI advancements. The strong reception of Megapack and Powerwall products has placed the Energy Generation & Storage Business on a solid growth path. TSLA’s expansive global supercharging network boasts more than 65,000 connectors. Automotive giants like Ford, General Motors, Mercedes and others have already enlisted to utilize Tesla's North American Charging Standard.
Musk is betting big on Full Self-Driving (FSD) and robotaxis, calling them Tesla’s most valuable future segment. Tesla plans to roll out unsupervised FSD as a paid service in Austin this June, with potential expansion to California and other U.S. regions by year-end, pending regulatory approvals. The Humanoid robot project (Optimus) and the much-awaited Cybercab, a two-seat autonomous vehicle, are expected to hit volume production in 2026. TSLA currently carries a Zacks Rank #3 (Hold).
Meta, with a market capitalization of $1.591 trillion, is the world’s largest social media platform. It is considered to have pioneered the concept of social networking, which is why it enjoys a first-mover advantage in this market. Messenger and WhatsApp are extremely prized possessions of Meta.
Meta believes AI tools will improve business messaging experience and customer support. Mark Zuckerberg, CEO of Meta, believes that “this is going to be the year when a highly intelligent and personalized AI assistant reaches more than 1 billion people, and I expect Meta AI to be that leading AI assistant.” Zuckerberg also expects to build an AI engineering agent that has the coding and problem-solving abilities of a good mid-level engineer.
Meta’s focus on developing a strong footprint in the metaverse will drive its prospects over the long term. Oculus is the result of the company’s ambitious mixed-reality efforts, built on a stack of AI technologies. The multi-year partnership with Rayban-parent EssilorLuxottica is also noteworthy in terms of the development of augmented reality glasses. Meta plans to make huge investments in AI infrastructure over the long term. META currently carries Zacks Rank #3.