Preheat the oven to 300°F. Pat the beef cubes dry with paper towels and season them with salt and black pepper on all sides.
In a large Dutch oven, heat the oil over medium heat and cook the bacon until it turns crispy, then set it aside.
In the same pot, brown beef cubes in batches for about 3 minutes on each side over medium-high heat, and then set them aside.
Sauté chopped onion for 4 minutes, add garlic for 1 minute, then stir in tomato paste and balsamic vinegar for 1-2 minutes.
Pour in the red wine and simmer until it reduces by half. Use a spatula to scrape the bottom of the pot to release any flavorful caramelized bits.
Return the browned beef to the pot, pour in the beef broth, and add bay leaves. Give it a good stir, and allow it to simmer.
Cover the pot and cook in a preheated oven for 1 hour and 30 minutes.
Remove from the oven, add carrots, celery, and potatoes. Stir, cover, return to the oven for 1 hour and 30 minutes, or until beef and vegetables are tender.
Taste and adjust seasonings before serving.