Tag: founder CEOs

Apple – From Innovator To Fast Follower

Apple – From Innovator To Fast Follower

Apple no longer innovates. Look no further than its cash cow iPhone. Prior to the iPhone’s initial launch in January 2007, Motorola, Blackberry and Nokia ruled the mobile phone universe.

Today, rather than driving innovation, rather than striving to leapfrog the competition, Apple is content to play a feature/functionality cat and mouse game with Samsung, Google and upstarts such as OnePlus.

Heck, serial entrepreneur Jim Jannard, founder of Oakley (eyewear) and RED Cinema (mobile, cinematic high-definition cameras) will be first to market with a holographic phone this August/September when RED launches the RED Hydrogen One. Jannard has deep pockets, but his personal balance sheet of $2-3 Billion doesn’t begin to rival Apple’s $244 Billion cash war chest (including short and long-term marketable securities).

So what gives? Certainly Apple doesn’t have to put itself into financial dire straights in order to truly innovate. Apple’s corporate personality – and its lack of innovation – is related to the risk-averse personality of its non-founder CEO Tim Cook. This is consistent with our thesis that technology founder CEOs are better equipped to drive innovation than are hired CEOs. Technology founder CEOs embrace smart risk, push for perfection and don’t shy away from conflict in the pursuit of excellence. They are motivated to build, not to maintain, to extend market leadership positions, not run with the pack.

CEORater Technology Founder CEO Index Remains Undefeated

CEORater Technology Founder CEO Index Remains Undefeated

We created the CEORater Technology Founder CEO Index in 2017 to illustrate our strong belief that founder CEOs are better qualified to lead Technology companies than are “hired” CEOs/ professional managers. The CEORater Index remains undefeated through July 13th 2018.

The CEORater Technology Founder CEO Index returned 24.7% and 22.8% on a Weighted and Unweighted Return basis respectively (click here for detail) during the January 2nd 2018 – July 13th 2018 period.

The S&P 500 Information Technology (TKR: S5INFT) returned 13.7% on a Weighted basis over the same period.

The Powershares S&P 500® Equal Weight Technology ETF (TKR: RYT) returned 14.5% on an Unweighted basis over the same period.