The Case for Investing in Underdogs

FORTY - ONE NORTH’S SELECT INSIGHTS: HARVARD BUSINESS REVIEW

Investors often see a company’s initial success as evidence of superior capabilities. This article suggests that in many cases initial success is down to luck or circumstances beyond the company’s control, and that many companies that fail may in fact be more capable of superior performance. The authors explain the dynamic and illustrate how investing in underdog companies and people often pays off in the long run.