Least-worse refers to choosing the option that is the least negative or detrimental among a set of unfavorable choices. There are many other expressions with a similar message, such as, “don’t make perfect the enemy of good” and, in medicine, “first, do no harm.”
In the realm of decision making, the concept of “least-worst” refers to choosing the option that is the least detrimental among a set of unfavorable choices. This approach may not result in an ideal outcome but seeks to minimize negative consequences.
Considering the foregoing, investors are likely to attempt to seek out managements with demonstrable decision-making skills. CEOs of successful companies usually have a clear track record in the area of business and product decisions. Of course, the best management decisions are subject to politically driven government actions, such as tariffs, subsidies, and mandates.
Consider the ill-fated effort to manage the US passenger vehicle fleet.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA
