The Privately Held Company Does Not Have A Stock But There Are Other Ways To Invest…
LEGO® is a privately owned and operated toy manufacturing company out of Billund, Denmark. According to online sources, 75% of the company’s equity is held by Kjeld Kirk Kristiansen who is from the Kristiansen family that founded LEGO® in 1932, and the other 25% is held by the LEGO® foundation.
Why Has LEGO® Remained Private Without A Stock?
If it ain’t broke, don’t fix it. In 2022 alone, LEGO® grew its revenue by a staggering 17%. The company is entirely capable of governing and growing itself without the need for public funding. This allows LEGO® to remain true to its vision, passion, and business model.
Why Do Businesses Stay Private?
It is hard to say for certain as it is a case-by-case basis. We can take a look at other business’ reasons for remaining private: you are only beholden to a small group of investors, you can keep control over your brand, and you can keep your existing strategy. Public companies have an IPO to gain capital and broaden their scope – there is no need for LEGO® to do such a thing. They have all the capital and growth they need, and the colorful bricks are showing zero sign of stagnation.
So, How Can You Invest In LEGO®?
The best way to grow the company is to invest in its tangible product offering. Get out there and stock up with some LEGO® sets! They grow at 8-11% per year, which is better than gold. Plus, by buying sets you support the private shareholders, the workforce, the company, and the vision to “play well” with arguably the greatest toy in global history.