Research shows that illiquid stocks tend to perform better over the long term. This is particularly true for companies with a large main shareholder or group of associate shareholders, such as a wealthy family. There are two reasons why this tends to be the case. Firstly, shareholders who own a large proportion of a firm tend to have a longer-term outlook than individual shareholders, and they are less likely to dump and run when the company misses its quarterly numbers.
It’s also far harder to find a buyer
