The cover curse: explained

A study explains the business magazine cover curse

We’ve taken grief for decades about the cover curse at BW. When you see a glowing cover story on a company, the common wisdom says, sell. Now a trio of financial analysts has carried out a study of this cover curse at BW, Forbes and Fortune. (ex Andreesen). And they conclude, I’m sorry to see, that there’s something to the curse. Basically, a positive or negative cover story marks the end of a company’s “extreme” behavior, either good or bad. After the cover story, they tend to regress, in their corporate way, toward the mean.

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