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> conglomerates are inefficient It's interesting that you say that on a subthread discussing something Warren Buffet said. Berkshire Hathaway became an efficie
by nindalf 10y ago
> conglomerates are inefficient
It's interesting that you say that on a subthread discussing something Warren Buffet said. Berkshire Hathaway became an efficient conglomerate by acquiring and operating companies that eschewed the very principle we're discussing.
- slededit 10y agoHe has addressed that in the past. They are able to work around some of the problems by maintaining a hands off approach to their subsidiaries. There is also an important trust relationship that encourages the subsidiaries to give up "excess" profits to the parent.