Best Places to Work Portfolio

Aug 14, 2023

∙ Paid

They say, “take care of your employees and they will take care of your business.”

Happy employees tend to deliver better performances and help business succeed. In turn, successful businesses are able to reward employees and the positive energy create great places to work. As a result, they tend to attract more talents. This becomes a virtuous cycle where success begets more success.

This led me to ponder whether investing in a portfolio of companies renowned for their exceptional workplaces could potentially outperform the S&P 500 index?

So I decided to test it out and create the ‘Best Places to Work Portfolio’. This selection process is based on the U.S. ranking provided by Glassdoor, where I pick the top 20 companies from each year to form the portfolio. I will focus on publicly listed companies as investing in private firms isn't feasible for the majority of investors.

Since the annual list is unveiled in January, I will initiate the portfolio at the end of January and rebalance it annually. This rebalance will account for the fluidity of rankings over time. The 20 holdings will be equally weighted, with each stock representing approximately 5% of the portfolio's total value. Upon entering a new year, any surviving stocks will be rebalanced back to the 5% mark.

Let’s see how the Best Places to Work Portfolio fared in the past 10 years.