MarginofSafety

Going_for_CFA_and_ACCA wrote:
You can view a conglomerate as a collection (or portfolio) of business opreations in different sectors. You would expect diversification from being invested in these different sectors but I think it has been observed that conglomerates underperform relative to directly investing in the different business sectors yourself - hence the need for a discount on conglomerates.
That’s correct!