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Legal Definitions - diversified holding company

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Definition of diversified holding company

A diversified holding company is a type of holding company that controls several unrelated companies or businesses.

  • Berkshire Hathaway is a diversified holding company that owns subsidiaries in various industries such as insurance, retail, and energy.
  • Alphabet Inc. is a diversified holding company that owns subsidiaries such as Google, YouTube, and Waymo.

These examples illustrate how a diversified holding company owns and controls multiple companies in different industries. This allows the holding company to spread its investments and reduce risk by not relying on a single industry or business.

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Simple Definition

A diversified holding company is a big company that owns many different smaller companies that do different things. It's like a boss that controls lots of workers who do different jobs. The holding company doesn't do the work itself, but it supervises and owns the other companies.
diversification | diversified investment company Read a random term: balance sheet

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The young man knows the rules, but the old man knows the exceptions.

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