Be Brave in the New Economic World

A recent study confirms what we’ve been saying for months: companies that are bold in these troubled economic times will reap the benefits of their actions.  As the study’s authors state:

“Companies with M&A in mind should be emboldened by our analysis: fortune favors the brave. Fears that M&A is riskier post-Lehman seem to be misplaced.”

The study cites Cisco as one company that has been making acquisitions during this time and has outperformed the major indices. Cisco is a classic example of a company making consistently making small, targeted acquisitions to calibrate their business.  One quote that has stuck with me in the past few months comes from Cisco CEO John Chambers this past March:

“Without exception, all of my biggest mistakes have come because I have moved too slowly.”