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https://en.wikipedia.org/wiki/Good_to_Great https://en.wikipedia.org/wiki/Good_to_Great > Steven D. Levitt noted that some of the companies selected as "great"
by barry-cotter 7y ago
https://en.wikipedia.org/wiki/Good_to_Great https://en.wikipedia.org/wiki/Good_to_Great
> Steven D. Levitt noted that some of the companies selected as "great" have since gotten into serious trouble, such as Circuit City and Fannie Mae, while only Nucor had "dramatically outperformed the stock market" and "Abbott Labs and Wells Fargo have done okay". He further states that investing in the portfolio of the 11 companies covered by the book, in the year of 2001, would actually result in underperforming the S&P 500.[6] Levitt concludes that books like this are "mostly backward-looking" and can't offer a guide for the future.
- octodog 7y agoThat's not a very helpful criticism. If the companies go on to fail or make mistakes it doesn't mean that their previous good work or strategy is invalid.
- cjblomqvist 7y agoBut it does prove that it's armchair research, which is of little value in providing facts about which strategy you should go about. It does provide some food for thought, but probably in a prescriptive manner which can be dangerous if taken seriously.