1. In a heavy saucepan, heat the oil and brown the beef quickly on all sides. Add the carrot, celery and onion and saute until the onion is golden brown. Add the garlic, bay leaves, salt and pepper. Continue cooking over low heat.
2. Soak the mushrooms in warm water several minutes. Drain off the water, chop the mushrooms and add to the meat and vegetables. Cook, uncovered, over low heat four minutes. Add the wine and the tomato paste diluted with the warm beef broth, cover and bring to a boil. Continue cooking, covered, until the meat is tender, about two and one-half hours. Stir occasionally, basting the meat from time to time. If the gravy becomes too thick, add more warm beef broth.
3. When the meat is done, remove from the pan and serve separately.