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QuestionsCategory: Management QuadrantManagement Quaadrant – Ownership Stake
Wilfred Yang asked 1 year ago

Hi
I like to ask about the ownership stake. At what % is it deemed insignificant, and at what % is it deemed excessive. Is there a range we should be looking at?

4 Answers
Jieren Zheng answered 1 year ago

For me, my gauge would be

  • >10% for US
  • >30% for Asia Pacific

Hope it helps.

Victor Chng replied 1 year ago

Thanks JR

Jieren Zheng replied 1 year ago

Welcome!

Victor Chng answered 1 year ago

Hi Wilfred,
 
You can find the percentage range in the video here. https://investmentquadrant.com/the-management-quadrant/ownership-stake/

Wilfred Yang answered 1 year ago

Thanks. Are you referring to the 1:15 mark where you showed a chart with the tipping point at ~ 35%?
Drawing on Jieren’s reply, that would mean for APAC, there isn’t much room before it hits this tipping point (>30% – 35%)
Thanks.

Victor Chng answered 1 year ago

Hi Wilfred,
 
In general rule of thumb, below 10% probably is insignificant while more than 70% is excessive. This is just a rough guideline, you still need to determine the absolute amount. For instance, if the management stake in the company is 6% but that percentage equal to $1billion in value then it is still significant.