Definition
Conglomerate
What is a "conglomerate"? What is the definition of the term "conglomerate"?
In the world of finance, a company is called a "conglomerate" if they own a number of different companies or divisions that operate in a number of unrelated industries.
For instance, Berkshire Hathaway is a "conglomerate". Not only does Berkshire Hathaway own a number of insurance companies, but they also own food companies, clothing companies and home furnishing companies, just to name a few.
Berkshire Hathaway doesn't buy companies that will merge with other companies - instead, they buy completely unrelated companies that they deem to be a good bargain.
Another example of a conglomerate is General Electric.
Conglomerates are generally less vulnerable to recessions because they are involved in a wide variety of different businesses.
For instance, Berkshire Hathaway is a "conglomerate". Not only does Berkshire Hathaway own a number of insurance companies, but they also own food companies, clothing companies and home furnishing companies, just to name a few. Berkshire Hathaway doesn't buy companies that will merge with other companies - instead, they buy completely unrelated companies that they deem to be a good bargain.
Another example of a conglomerate is General Electric.
Conglomerates are generally less vulnerable to recessions because they are involved in a wide variety of different businesses.