Betting on Halos

Betting on Halos

By Mark Chussil

Time to play investment roulette!

You can choose to invest in (or work in or start up) only one of these businesses.

  • Business A has most of the characteristics on your good-business list. However, it is re­porting poor results.
  • Business B has most of the characteristics on your bad-business list. Even so, it is enjoy­ing great performance.

Which one would you choose?

If you chose Business A, the good business with poor performance, you are implicitly asserting a belief in principles. You are saying that its results will improve because its strengths, its competi­tive-strategy funda­mentals, are strong.

If you chose Business B, the bad business with good performance, you are implicitly asserting that its lucky performance will persist or that you’ll time your exit per­fectly. You are gambling.

Please see the full text of this essay on Competing.com.

Mark Chussil, Founder and CEO of Advanced Competitive Strategies, is also a Co-founder of Competing.com.

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