Nobody understands, nurtures, or builds a company better than its founder. Like a dedicated parent, founders cultivate their businesses with passion, vision, and unwavering commitment. Their risk tolerance often surpasses that of professional executives; these leaders are ready to learn new strategies, innovate, and take bold risks to ensure their company’s success. Therefore, these businesses closely reflect their founders’ visions and principles.

Success stories abound for visionary founder-owners like Elon Musk, Warren Buffett, Steve Jobs, Jeff Bezos, Mark Zuckerberg, and Bill Gates, who have transformed industries and created trillion-dollar firms that continue to prosper. Notable founder-run companies today include NVIDIA Corporation (NVDA), Amazon.com Inc. (AMZN), Meta Platforms Inc. (META), Tesla, Inc. (TSLA), Berkshire Hathaway Inc. (BRK.A, BRK.B), and Netflix Inc. (NFLX).

At the outset, potential investors may struggle to share a founder’s belief, making it difficult to secure funding for the business. Founders often invest their own personal wealth into these bootstrap companies. Should the venture succeed, they may attract angel investors or raise funds, but the founder-owner typically retains the highest stake and risk.

Since these companies emerge from distinct ideas, they often rely on technological innovation. They are created to tackle challenges while ensuring long-term sustainability. A notable example is Bank of New York Mellon (BK), the oldest firm in the S&P 500, established by Alexander Hamilton in 1784 and still thriving centuries later.

Nonetheless, not every narrative is positive, as not every startup becomes a unicorn. Founders may find it challenging to delegate responsibilities, often doubting others’ effectiveness in their roles. Many take on multiple leadership positions and face challenges with succession planning.

Despite these complexities, substantial evidence suggests that founder-led companies generally outperform their rivals over the long term. According to Bain & Company’s extensive research, S&P 500 firms with deeply involved founders “performed 3.1 times better” during the 15-year span from 1999 to 2014.

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4 Founder-Run Companies to Have in Your Portfolio

NVIDIA Corporation, boasting a market cap of $2.698 trillion, leads in visual computing technologies and is the inventor of the graphic processing unit (GPU). Over time, the company has shifted its focus from PC graphics to artificial intelligence (AI)-based solutions, which now encompass high-performance computing (HPC), gaming, and virtual reality (VR) platforms.

The company’s CEO and founder, Jensen Huang, asserts that accelerated computing and generative AI are revolutionizing not only the computer industry but all sectors globally. NVIDIA has already leveraged AI to create several multi-billion-dollar verticals in gaming, healthcare, automotive, and robotics. Upcoming products like the Hopper 200 and Blackwell GPUs are designed for training large language models, recommendation engines, and applications related to generative AI.

The datacenter market presents significant growth prospects for NVIDIA. As businesses increasingly transition to the cloud, demand for datacenters is on the rise. To meet this demand, operators such as Amazon, Microsoft, and Alphabet are expanding globally, boosting the need for GPUs. Currently, NVDA holds a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank (Strong Buy) stocks here.

Netflix, valued at $387.7 billion, is described as a trailblazer in the streaming industry. Initially a DVD rental service, Netflix has grown into a dominant streaming provider, benefiting from a diverse content library and strong international presence. Co-founded by Wilmot Reed Hastings Jr. and Marc Randolph in 1997, Hastings now serves as the executive chairman.

Netflix is investing heavily in original content, helping the company maintain its market position despite the rise of competitors like Disney+ and Apple TV+, as well as established services such as Amazon Prime Video. NFLX is also rated at Zacks Rank #2.

Regional content initiatives are driving international expansion for Netflix. The company is diversifying its programming and collaborating on projects in various countries, including India, Mexico, Spain, and several others. Furthermore, Netflix has introduced low-cost mobile plans in price-sensitive regions like India, Indonesia, and the Philippines. The anticipated low-cost ad tier is expected to fuel growth as well.

Netflix aims to enhance its core business by increasing the quantity of series and films, improving product experiences, expanding its ads business, and exploring new ventures such as live programming and games. The company projects revenues between $43.5 billion and $44.5 billion with an operating margin of 29% by 2025.

Tesla, with a market cap of $847.4 billion, has transformed from an electric vehicle (EV) manufacturer to an innovative technology institution. CEO Elon Musk envisions the company being primarily recognized for its AI and robotics capabilities rather than being just an automotive company.

Tesla’s long-term growth potential remains robust, fueled by its successful Energy Generation & Storage segment and a vast Supercharger network. The strong reception of products like the Megapack and Powerwall has solidified this division’s expansion. Currently, TSLA operates over 65,000 connectors in its global supercharging network, with major automotive companies like Ford and General Motors planning collaborations.

Musk is heavily investing in Full Self-Driving (FSD) technology and robotaxis, which he considers to be the company’s most valuable future segment. Tesla plans to launch unsupervised FSD as a paid service in Austin this June, with aims to expand to California and other regions pending regulatory approvals. The Humanoid robot initiative, known as Optimus, along with the anticipated Cybercab, is expected to enter mass production by 2026. TSLA currently holds a Zacks Rank #3 (Hold).

Meta has a robust market capitalization of $1.591 trillion, making it the largest social media platform globally. The company pioneered social networking, which contributes to its distinctive first-mover advantage. Products like Messenger and WhatsApp are valuable assets of Meta.

Meta anticipates that AI tools will enhance the business messaging experience and customer support. CEO Mark Zuckerberg believes that “this is going to be the year when a highly intelligent and personalized AI assistant reaches more than 1 billion people.”