For many Australians, Melbourne Cup is one of the most important days on their social and sporting calendars.
When it comes to horse racing, it's easy for the casual punter to think that it is all about the horse. Experienced gamblers of course know that there is plenty more to picking a winner than just considering the horse. Other important factors include the jockey, racing conditions, the track, handicapping and so forth.
Interestingly, a number of parallels can be drawn between horse racing and investing.
Consider this: If backing the right horse is the equivalent to backing the right company, then backing the right jockey is the equivalent of backing the right manager.
While betting on a broken down old horse even if it is being ridden by a star jockey might fail to deliver a win, identifying an in-form horse being ridden by a star jockey can result in a podium finish. Of course the perfect situation is when you can identify a great horse PLUS a great jockey racing on their favourite track in their preferred weather conditions!
Here are three quality companies that all boast star jockeys, not surprisingly they are all founders or long-term shareholders with significant skin in the game…
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) is a highly regarded conglomerate that has produced a total shareholder return (TSR) over the past decade of 8.6% per annum (pa) and has been led by the Miller family since at least 1984.
Flight Centre Travel Group Ltd (ASX: FLT) is led by the entrepreneurial Graham Turner. Turner successfully founded a travel company that specialised in bus tours around Europe, North Africa and Asia in the early 1970s. After selling this business, Turner turned his attention to Flight Centre which he has energetically grown since the mid-1980s. Flight Centre boasts a TSR of 12.2% pa over the past decade.
Reece Australia Limited (ASX: REH) is a leading provider of plumbing products to both trade and retail customers. Since 1969 the Wilson family has owned a substantial stake and been involved with the day-to-day affairs of Reece. Reece's 10-year TSR has been an outstanding 14.8% pa.
