Boston Box

Cash should be invested in high growth companies where Questons marks can be come stars and Stars can manintain their dominance. Dogs can be harvested. But what about downturns? You cannot harvest all your companies in a recession

In the 1970s, the BCG created and popularized the "growth-share matrix", a simple chart to assist large corporations in deciding how to allocate cash among their business units. The corporation would categorize its business units as "Stars", "Cash Cows", "Question Marks", and "Dogs", and then allocate cash accordingly, moving money from cash cows toward "stars" and "question marks" that had higher market growth rates, and hence higher upside potential.

The chart was popular for two decades and "continues to be used as a primer in the principles of portfolio management,"