Michael Dell, what got you here…

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Image representing Michael Dell as depicted in...

Michael Dell Image via CrunchBase

Won’t necessarily get you there. I won’t dare to offer Dell strategic advice without being deeply familiar with your situation.

I will, however, offer you some advice on human bias and the potential effects. You want to take the company private – according to this article in the WSJ. That may not be a bad idea. However, according to the article, the reasons for this move boil down to the fact that Michael Dell wants to continue the current strategy, albeit to a greater extent.

Dell, presumably, does not think investors have the proper long term perspective to realize the benefits of such a strategy. However, the whole idea may be a result of the sunk cost fallacy. People, especially self-starters like Michael Dell, have a hard time accepting that a strategy that they have conceived has been rejected by the market.

There may be a very good reason why investors don’t want to see a corporate double down. For his own good, Dell needs to consider whether he wants to risk his excellent legacy (and part of his fortune) on bucking the market. It’s your call, big guy, and we won’t judge retrospectively.

Choose wisely.

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