Is A Company Culture Important In Investing?

Basically lately I had a poll in 2 different telegram groups - Fundamental Scorecard (my own's Telegram) and Invest for the Long Term (Boon Tee's Telegram Group)

I was questioning if a company culture is an important factor in our investment thesis. 

The main reason behind the question was that I used to look at Glassdoor rating as a consideration when I was choosing a company. But recently, there is a company that I was interested in that had a very bad Glassdoor Rating. That made me wonder if I should ignore it.

Result from "Invest for the Long Term"

Result from "Fundamental Scorecard"

Thus, the poll results shows that more than 50% of Investors that participated in the poll stated that at least a company culture will have at least a 50% weightage in their investment decision making. This mean that if a company has a bad culture, technically you will ignore it.

Nevertheless, the argument against the results were also significant - meaning it does not matter.

3 of the argument that make sense to me includes:

  • If a company is massive;
  • High Turnover caused employees not tuned to the founder's vision;
  • Results/Numbers matter eventually;
  • The results that we are taking information from maybe localised.


Initially, I thought maybe this works much better for a small cap companies. But after much thinking, I decided that a company culture SHOULD NOT be a main consideration factor when it comes to investing. After all, what matters when it comes to investing, is a company's moat, a founder's vision, the business model, and eventually the numbers.

However, if the company you intend to invest in or have invested in does have "happy employees", you can also deem it as a "valuation multiple" too. 

You will get the idea when you take a look at the top 10 employers in the Forbes' article of the World Best Employers as of Oct 21:

If you are interested, please do bookmark this Blog or follow me on TUBInvesting FB, or Fundamental Scorecard Telegram Group (please google for the links!).

A shoutout to Boon Tee's Youtube Channel as well as its telegram group (links to the group in the youtube channel) for the help!

Stay tune for my next post!