The Family Business Portfolio

Last Updated on November 28, 2020 by Oddmund Groette

Before you continue reading we emphasize that the portfolio below is no recommendation to buy or sell the mentioned securities. We’re no investment advisors. Please do your own due diligence.

Below you find our picks for a family business portfolio – companies controlled or owned by insiders or a family, or people who have real skin in the game. These owners have a real passion for their business and are not afraid of working outside normal office hours – they are not working for the paycheck.

Why invest alongside family-owners who have skin in the game?

If you intend to hold investments for a long time, an assessment of you are doing business with is probably the most important decision of all. Judging the owners can be just as important as judging the managers.

The average tenure for a CEO is five years. What do you think drives their thinking? Are they thinking decades or years? When they go to sleep at night, are they most likely to think about their compensation or which direction their company is heading in the next decades? Most likely they think about the former. Opposite, an owner with real skin in the game thinks in decades.

To avoid the agent-principal conflict, we believe it makes sense for outside investors to invest alongside successful families. A lot of empirical evidence points toward outperformance for this group among public companies.  You can read more in this article:

The goal of the portfolio:

The goal of the portfolio is fourfold:

  1. To construct a portfolio where the interests of the management are aligned with outside investors.
  2. Companies are financed relatively conservatively and thus less fragile.
  3. To get a return equal to or better than the main indices.
  4. To have a very low portfolio turnover, probably just a few deletions/additions per year, if any at all.

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This is a very long-term portfolio: decades. On 31st of December, the portfolio is rebalanced back to equal weighting. Any dividends are reinvested in the same stock. Currency movements are ignored as it depends on your place of residence, wherever that may be.

The portfolio:

Here is a list of the companies included in the portfolio (start of the portfolio was 1st of September 2020):

  Return %
    Date Buy Price per (not including
Ticker Exchange included price 27th of November dividends)
Admiral plc ADM.L London 31.8.2020 2631 2847 8,2
Alleghany Y NYSE 31.8.2021 554.56 589.88 6,4
Berkshire Hathaway BRK.B NYSE 31.8.2022 218.04 231.55 6,2
Brookfield Asset Management BAM NYSE 31.8.2023 33.74 41.12 21,9
Coloplast A/S COLO-B.CO Copenhagen 31.8.2024 1063 929.8 -12,5
Comcast CMCSA Nasdaq 31.8.2025 44.81 51.75 15,5
Facebook FB Nasdaq 31.8.2026 293.2 277.81 -5,2
Bouvet BOUVET.OL Oslo 31.8.2027 586 640 9,2
Investor AB INVE-B.ST Stockholm 31.8.2028 553 595 7,6
Kone KNEBV.HE Helsinki 31.8.2029 72.44 69.62 -3,9
L’Oreal OR.PA Paris 31.8.2030 279.8 309.3 10,5
Lukoil LUKOY OTC 31.8.2031 67.23 69.27 3,0
Philip Morris PM NYSE 31.8.2032 79.79 75.9 -4,9
Samsung SMSN.L London 31.8.2033 1150 1554 35,1
WR Berkley WRB NYSE 31.8.2034 62.05 64.41 3,8


Below you find our reasoning for including the stock in the portfolio:


Disclosure: We’re long Alleghany, Berkshire, Comcast, Facebook, Investor AB, Kone, Lukoil, Philip Morris, Samsung and WR Berkley.

We’re not financial advisors. Please do your own due diligence and investment research or consult a financial professional. All articles are our opinion – they are not suggestions to buy or sell any securities.