Culture matters.
I did a little experiment. I do believe great culture can drive great results. So I made a basket of companies listed in Glassdoor's Best Places to Work 2022 that are publicly traded for at least 5 years and compared the average returns to major indices:

Average return of these companies for the last 5Y was 116,98% vs $QQQ 96,48% and $SPY 51,29%


The difference widens even more if I do the same thing with last 10Y returns:

Basket average: 459,77%
$QQQ: 345,13%
$SPY: 212,15%

No guarantees things will repeat in a linear way; however, I do believe this is a great dataset that confirms this thesis.
ParrotStock's avatar
From experience, culture means almost everything. Saying the right things is great, but truly living those things (especially in a crisis) is a whole other level.

It's one of the hardest things to change at a company, because it means change has to start at the top, and usually a lot of people have to be replaced. Not because they are necessarily bad people/employee's, but because the existing culture is so deeply engrained.

We tend to hire people similar to ourselves, that's why both good and bad cultures are sticky.

Those that get it right attract and retain the best employee's who all are driven to the best for the organization. It really is a magical experience.
Joey Hirendernath's avatar
A very interesting experiment indeed. Only after reading super pumped did I become aware of what it means to have a good culture and not just drive results. Really cool to see $LULU is relatively high on the list.
Rihard Jarc's avatar
Wow very interesting. Thx for sharing this.

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