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