Comcast Got You Down?

Like many Americans, I have a deep and abiding hatred of Comcast. For years, I have endured their horrendous customer “service,” preposterous corporate policies, and spotty service offerings. Eventually, I couldn’t take it anymore. So I bought their stock.

What the What?

Buying stock of a company you hate may seem like an odd move. Here’s why it makes sense. I don’t like Comcast, but I recognize that their poor treatment of customers—including me—is why they make so much money. (Their stock price has doubled since 2012.) Every time they nickel-and-dime or bait-and-switch their customers, they’re adding to their bottom line. Comcast’s behavior upsets me, and typically I would just take my business elsewhere. But they have a monopoly on high-speed internet where I live, so I basically have no choice. To offset the frustration I experience whenever I have to call customer service, fight to keep my bill from skyrocketing, or suffer through interminable Netflix buffering, I now take solace in knowing that at least some of the change that Comcast is taking out of my pocket will end up back in my pocket, through increased share price.

Theory

Investing in companies that frustrate you isn’t a typical investment strategy, but the reasoning for doing so is merely an extension of modern portfolio theory. If your portfolio is unbalanced, you’re vulnerable to swings in a particular stock, sector, or asset class. By balancing your portfolio, you reduce this financial risk. Investors also balance their portfolios against external (non-portfolio) risks. For example, an oil company executive should avoid having too much of his portfolio allocated to oil interests. If the oil market sours, he doesn’t want for both his job and his portfolio to be downsized.

But why stop there? Instead of just balancing one’s financial interests, why not also balance to improve one’s overall utility/well-being? I used to get very frustrated by Comcast’s many, many shortcomings. But now, I can more easily shrug off their deficiencies because I know that their stinginess accrues both to my detriment (as a customer) and benefit (as an investor). It’s like a silver lining to a very dark cloud.