I’ve just read a great article on the BBC Website about how businesses react to ups and downs.
It stems from a best-selling book by Leonard Mlodinow called the Drunkard’s Walk.
The book states that randomness plays a part in success. The ups and downs of bad luck, or good luck, mask – for a while – underlying quality, but few people are confident enough to stand by their judgements and so remain glued instead to short-term indicators which are bedevilled by chance.
It’s well worth a read and you can find the full article here.
