'Eat Your Own Dog Food'

What Is "Eat Your Own Dog Food"?

"Eat your own canine food" is a conversational articulation that depicts a company involving its own products or services for its internal operations. The term is accepted to have originated with Microsoft during the 1980s, albeit the terms true starting points are discussed. That's what the significance is on the off chance that a canine food is of the high quality advertised to consumers, it ought to be sufficient for a person to eat too.

While it was initially utilized in reference to software companies utilizing their own internally-created apparatuses for software development, its utilization has spread to different areas also. The term is at times abbreviated just to "canine food."

Understanding "Eat Your Own Dog Food"

The essential reason behind "eating your own canine food" is that assuming a firm anticipates that paying customers should utilize its products or services, it ought to expect no less from its own employees. Not involving its own products for internal operations might suggest that a company doesn't think its products are best-of-breed in spite of its public decree of the conviction and that it has more confidence in an opponent's offerings.

Fund Managers Prefer "Human Food"

There's a comparable saying in investment management: "Eat your own cooking." Assuming fund managers are human creatures, not dogs, the food would be good for human consumption, and the food, in this case, is a portfolio of assets. As a marketing strategy to draw in investors to their funds, portfolio managers (PM) will promote the way that they eat their own cooking by investing their own money alongside the shareholders of their funds.

In 2005, the Securities and Exchange Commission started requiring mutual funds to unveil the amount of PM's personal investments in their funds. Morningstar, the mutual fund research and rating firm, directed a study in 2015 that indicated that funds managed by PMs with higher personal investments delivered greater returns than the average of the competition — seriously in this way, by and large — contingent upon the asset class and on the amount of personal funds invested.

For instance, for global equity funds, where PMs invested $1 at least million of their own money in the funds, 68% beat the competition average, compared to 32% of funds with PMs who didn't personally invest a dime more than a five-year period from 2009-14.

Model from a Marketing Blurb

This passage from a Hodges Capital Management marketing piece makes sense of the concept:

Just as you wouldn't hire a vegan as the head cook at a prestigious steakhouse, we accept investors must consider a chief's personal ownership while choosing a mutual fund. At Hodges Capital Management, we "eat our own cooking" as all of our portfolio managers have significant ownership in the mutual fund(s) that they make due.

Highlights

• That's what the thought is assuming the product is adequate for consumers, it is sufficient for its employees to use at work.
• The specific beginnings of the phrase are discussed, yet during the 1980s Microsoft advocated the term by having its own employees foster software utilizing Microsoft operating systems and devices.
• Eating your own canine food is a phrase that alludes to the internal utilization of a company's own products or services in its everyday operations.