‘The customer is always right' has been the mantra of many successful businesses. The same principle can be applied to investing, says Thomas Kratky, a managing director at CSat, a hedge fund that relies on customer satisfaction data to pick stocks.
"It's self-evident that companies with satisfied customers are likely to outperform those with unsatisfied customers," says Kratky. "What's surprising is that so few investors appear to consider customer satisfaction as a driver of equity returns."
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