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Those are conglomerates, which are quite controversial in the investing world. They're usually stable businesses, but often come with a "conglomerate discount"
by rm999 14y ago
Those are conglomerates, which are quite controversial in the investing world. They're usually stable businesses, but often come with a "conglomerate discount" that leads to lower investor returns. This is due to increased overhead, murkier financials, and the simple fact that the management can't be as focused.
http://www.investopedia.com/terms/c/conglomeratediscount.asp http://www.investopedia.com/terms/c/conglomeratediscount.asp
- dman 14y agoThanks for pointing the discount out - I wasnt aware of it. http://www.google.com/finance?catid=59360336 http://www.google.com/finance?catid=59360336 does indeed confirm that over long periods of time conglomerates appear to perform poorly when compared to the S&P.