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GOOGL has voting rights versus GOOG. There hasn't been a large performance difference though. IAC vs. MTCH, FB, Nike, Berkshire, and Regeneron all have done wel
by pmart123 7y ago
GOOGL has voting rights versus GOOG. There hasn't been a large performance difference though. IAC vs. MTCH, FB, Nike, Berkshire, and Regeneron all have done well though long-term with dual share classes as contra examples. Founder led companies typically out-perform the market. In WeWork's case though, we've seen huge governance red flags already though, so I am not saying voting rights don't matter. If the management is aligned with the long-term vision (not selling $700M before the IPO), they typically matter less.
- webninja 7y agoSergey Brin and Larry Page together own 14% of Alphabet’s shares but own 56% of Alphabet’s voting rights because the shares they own are mostly non-public preferred shares. Since they own more than 51% of the voting rights, GOOGL shares don’t carry a meaningful premium over GOOG. Today, the premium is only between $2 and $3.