Does it make sense to invest in (not short) the worst companies?

People always talk about companies they use on a regular basis, but HATE because they have no other choice.

Case in point:

Had an awful experience with Optus. Moved to Telstra, but it only got worse. They took 6 weeks to get my parents' phone number transferred. Mum's business depends on this phone number so it was devastating for her. To make matters worse, Telstra's Aussie call centre operators only deal with corporate accounts. Any regular accounts are handled offshore, which meant our escalations weren't taken seriously, they were passed around, there was no ownership of the case. Utter incompetence. I realised that as upset as I was, I had no choice but to go with the flow. After probably 50 phone calls, dozens of hours waiting, my only option was...to keep waiting. It's a toxic, disgusting business but I'm still there.

It makes me wonder - are these not the ultimate sorts of businesses?

At their lowest point, everyone loved to pile on Microsoft, but they kept using their OS. This lady I know kept talking about the evil oil industry, yet she loves her car. There are some businesses that could basically spit in your face yet you'd still give them money. How is this not the ultimate enterprise?

 

Uh people defined this a while back as a monopoly. Besides worst in what sense? And check telstras share price lately.

In other words your idea is barely scratching the surface of what you need to make an investment decision. Its like saying everyone needs somewhere to live so property will do well. Doesnt mean every property will.

 

Contact the TIO