Billionaire investor Jim Breyer spoke to a crowded room at Business Insider’s Ignition conference last night.
He spoke about what he thinks makes a successful business.
Breyer said he believes the most successful companies are founder held or family businesses.
He said he is certain that the first company to surpass a 1 trillion market cap will be a founder held, controlling shareholder company.
While he didn’t say it directly, this would suggest that Apple will not become a trillion dollar company. Apple is not led by a founder, or the founder’s family.
Apple recently rose above a $US700 billion valuation. We recently did the maths, and there’s a chance Apple could be a trillion dollar company if it can grow iPhone sales by 52% over the next few years. It looks like Breyer doesn’t think that it will matter.
There are great benefits to having a historical brand and a multi generational team, Breyer explained, and if a public company’s controlling shareholder takes a long term view, rather than focusing on each quarter, the company will grow significantly more profitable over time.
Breyer said that companies such as 21th Century Fox, which he currently sits on the board of, Wal-Mart, and Dell, which he previously sat on the boards of, all adhere to this principle.
He mentioned that Mark Zuckerberg has done an excellent job focusing on long-term goals, and he also sees a bright future for Facebook.