An updated edition of the July 28, 2025, article.

Founders hold a unique ability to shape and grow a company from inception, much like a parent nurturing a child. They have a clear vision and relentlessly back their ventures. Unlike traditional managers, founders often take greater risks, pursue unconventional ideas and drive innovation with bold choices. Their businesses frequently mirror their core values, ideals, and long-term aspirations, making them enduring reflections of their dedication and ambition.

Founder-run companies represent less than 5% of the S&P 500 index. But that does not make their contribution any less. 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 are NVIDIA, Amazon, Meta, Tesla, Berkshire Hathaway, Alphabet and Netflix. Founder-led companies represent nearly 15% of the total index’s market capitalization, with technology companies taking the lead.

These companies, often sparked by unique ideas, are typically rooted in technological innovation. Built from scratch, they are designed to withstand challenges and remain sustainable over the long run. In the early stages, others may struggle to see the founder’s vision, making fundraising difficult. As a result, founders frequently invest their personal savings to bootstrap operations. If the venture succeeds, it may later attract angel investors or external funding, yet the founder-owner consistently bears the greatest stake and risk.

Moreover, founder-owners often struggle to delegate responsibilities, driven by skepticism about whether others can truly match their level of commitment or understanding. Thus, they tend to assume multiple senior roles and frequently struggle to identify a capable successor. Yet, excelling across all areas is rarely feasible. This hesitation to delegate can restrict the infusion of professional expertise, potentially impeding the company’s ability to scale effectively or respond swiftly to changing market dynamics.

Nevertheless, there is strong evidence that founder-led companies tend to perform better over time.  Per a Harvard Business Review Study, founder-led companies had a market-adjusted return of 12% over three years against a return of negative 26% for companies that hired a professional CEO. Our Founder-Run Companies Screen further makes it easy to identify high-potential stocks. Currently, stocks like AppLovin Corporation (APP Quick QuoteAPP - Free Report) , Palantir Technologies (PLTR Quick QuotePLTR - Free Report) , Blackstone Inc. (BX Quick QuoteBX - Free Report) and CrowdStrike Holdings Inc. (CRWD Quick QuoteCRWD - Free Report) look appealing. 

Ready to uncover more transformative thematic investment ideas? Explore 36 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.

4 Founder-Run Companies to Add to Your Portfolio

AppLovin, with a market capitalization of $129.7 billion, has solidified its leadership in mobile advertising, powered by its next-gen AI engine, Axon 2. Adam Foroughi co-founded AppLovin with John Krystynak and Andrew Karamin in 2012 and is the executive chairman of the company.

AppLovin’s AXON machine learning engine has played a pivotal role in driving the growth of its software platform, enabling developers to optimize both user acquisition and monetization efforts. As the mobile advertising landscape shifts toward data-driven, performance-oriented solutions, AppLovin is strategically positioned to capture greater market share—particularly through its increasing emphasis on scalable, AI-enabled technologies. Its vertically integrated model, which combines cutting-edge ad tech with owned content, provides a competitive advantage in data utilization and user engagement optimization.

AppLovin’s transition to a software-centric model has led to improved margins and strengthened its financial performance, backed by solid free cash flow and effective capital management. The company’s decision to divest lower-performing gaming assets and focus on its high-growth ad tech platform positions it to further enhance profitability and deliver stronger returns on invested capital.

AppLovin is capitalizing on AI’s power to drive direct, scalable monetization in mobile advertising, a strategy that is paying off. It carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Palantir Technologies, with a market capitalization of $406.2 billion, builds and deploys software platforms for the intelligence community to help in counterterrorism investigations and operations. Alex Karp co-founded Palantir with Peter Thiel, Stephen Cohen and Joe Lonsdale in 2003 and is the executive chairman of the company.

Palantir’s comprehensive AI strategy combines its proprietary Foundry and Gotham platforms with a solid plan to promote AI adoption across both government and commercial sectors. PLTR’s performance stands out in an increasingly crowded AI space, where many companies are still experimenting with pilot deployments. Palantir’s strategy of making AI immediately useful — through production-ready agents and scalable platforms — has created a distinct moat around its commercial and government businesses.

As Palantir aligns its AI strategy with U.S. defense priorities, it is strengthening its position as a key player in the defense sector. Also, PLTR’s modular sales approach allows clients to purchase specific product components instead of committing to the full platform upfront.  This, in turn, has expanded its U.S. commercial customer base.

As AI continues to transform the software landscape, Palantir is one of the few players capitalizing not just on the hype but on the tangible utility of AI, delivering operationalized solutions that clients are eager to adopt. The company raised its full-year 2025 revenue guidance, with its midpoint of $4.146 billion indicating 45% year-over-year growth.

Blackstone, with a market capitalization of $225.7 billion, is the largest alternative asset manager in the world. It had more than $1.1 trillion in total assets under management as of Dec. 31, 2024. The company’s diversified products, revenue mix and superior position in the alternative investments space are likely to continue supporting AUM growth.

Stephen A. Schwarzman co-founded Blackstone with Peter Peterson in 1985 and is the executive chairman of the company. BX is the first major alternative asset manager to be part of the S&P 500 index.

This Zacks Rank #2 company has a strong presence globally, broad diversification and solid organic growth prospects. These, along with a strong revenue mix, superior position in the alternative investments space and solid total and fee-earning assets under management (AUM) balances, will continue to fuel growth.

Despite a tough fundraising backdrop for asset managers, Blackstone has continued to attract strong inflows. As of June 30, 2025, fundraising across its global private equity and real estate platforms lifted the firm’s available capital, or “dry powder,” to $181.2 billion. This significant capital base positions Blackstone to capitalize on market dislocations. The firm remains confident in the long-term prospects of areas such as digital infrastructure, energy and power, life sciences, alternative investments, and the recovery of commercial real estate. Moreover, robust growth trends in India and Japan create compelling opportunities, reinforcing Blackstone’s strategy for disciplined capital deployment.

CrowdStrike, with a market capitalization of $111.6 billion, has transformed cybersecurity for the cloud and AI. Its AI-native CrowdStrike Falcon, is a differentiator. George Kurtz co-founded CrowdStrike with Dmitri Alperovitch and Gregg Marston in 2011 and is the executive chairman of the company.

This Zacks Rank #2 company has been gaining from the rising demand for security and networking products amid the growing hybrid working trend. Continued digital transformation and cloud migration strategies adopted by organizations are key growth drivers. Its portfolio strength, mainly the Falcon platform’s 29 cloud modules, boosts its competitive edge and helps add users. Buyouts, such as Adaptive Shield and Flow Security, are expected to fuel growth.

CrowdStrike continues to leverage AI and machine learning to drive superior security outcomes and operational efficiency. The company’s Charlotte AI, its generative AI-powered platform, is gaining traction by automating security operations, improving response times and enhancing overall protection.
 
It mainly focuses on selling subscription-based services. This business model generates recurring revenues and higher margins for the company. For fiscal 2026, CrowdStrike now expects revenues between $4.749 billion and $4.805 billion, while adjusted operating income for fiscal 2025 is now projected in the band of $1-$1.04 billion.