Deep Dive – Thinking in generations rather than quarters: the crucial role of 'Skin in the Game'

In the world of investing, a great deal of attention is paid to balance sheets, profit and loss accounts and macroeconomic trends. Essential, without a doubt. But one of the most critical factors for long-term success is often overlooked: the quality and motivations of management.

The term "skin in the game", made famous by Warren Buffett, holds that a company's key figures should themselves also be significantly invested in it. As an investor, you entrust your capital to a management team. The crucial question then is: do they act as a temporary passer-by (an agent) or as a dedicated owner (an owner-operator)? The answer to that question has far-reaching consequences for your returns.

This article was originally written in Dutch and automatically translated into English with the help of AI. In case of any difference, the Dutch original prevails.