The Case for Making Bold Bets in Uncertain Times

Writing in MIT Sloan Management Review , BCG Henderson Institute’s Adam Job , Ulrich Pidun , and Valentin Szekasy assert that companies can create sustained advantage by taking risks during periods of uncertainty. Their analysis of nearly 6,000 companies over 15 years reveals how firms that increased M&A spending by 100% or more during times of uncertainty achieved 50% higher total shareholder returns than their peers over the next three years. “Nobody knows when uncertainty may strike,” they note. “But the most successful risk-takers are prepared to seize investment opportunities that may emerge amid uncertainty.”