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What if I told you that the companies celebrated by their employees for having the best culture and most inspiring leadership are also some of the best-performing investments in public markets, year after year?
History shows that the way employees praise their company can be an excellent tool to separate the wheat from the chaff and improve your odds of success as an investor.
Over the years, as I reviewed the evidence of the superior returns coming from highly rated-management teams, I’ve learned to incorporate culture in my stock selection process.
This week, Glassdoor announced the winners of the Best Places To Work 2022.
Let’s look at how the stocks of companies recognized as Best Places To Work have performed compared to the market and take a look at the top companies celebrated in the most recent 2022 ranking.
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Glassdoor is a website where current and former employees anonymously review companies and their management. Once enough reviews have been submitted, companies receive a score out of five stars. Similarly, CEOs receive a score out of 100%.
Here’s an example of a company’s reviews at a glance, using one of the top-rated companies in the US as an example, Salesforce (CRM):
The online reputation of large companies and management accountability have become immensely important for talent acquisition…