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The company is leveraging its massive global distribution system to meet consumer needs with products and packaging that suit each region, filling outlets with Coke-filled coolers, and finding innovative ways to keep costs down. Coca-Cola is in a great position as 2025 gets started.
The conglomerate's portfolio includes a host of high-quality stocks like Apple , Coca-Cola , and American Express , but in 2020, it acquired a small stake in cloud computing company Snowflake (NYSE: SNOW). of the conglomerate's $312 billion portfolio. million today. Here's why I'm not surprised. Image source: The Motley Fool.
And after the conglomerate delivered its weakest growth -- 2% -- in the last fiscal year, investors aren't too optimistic about its prospects. Understandably, the conglomerate is emphasizing its international e-commerce business more to sustain its growth ambitions.
Still, the conglomerate's lack of significant exposure to companies at the heart of the AI revolution is arguably another underappreciated risk factor. Instead, the conglomerate's equity portfolio is crafted to leverage its massive positions in dividend-paying companies, thereby creating value for shareholders through compounding.
Warren Buffett's diversified conglomerate generated those steady returns even as inflation, elevated interest rates, and geopolitical conflicts rattled the broader markets. Berkshire Hathaway 's (NYSE: BRK.A) (NYSE: BRK.B) stock has rallied more than 20% over the past 12 months, and only trades about 3% below its all-time high.
The industrial conglomerate's structure has served it well in recent years , as parts of its business have provided valuable support while others have been weaker. However, a crucial part of being an industrial conglomerate is using cash flow and financial leverage to acquire or internally develop new businesses.
As Chairman and CEO of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) , Buffett is in charge of managing the bulk of the conglomerate's equity portfolio. He also established positions in several leveraged ETFs focused on Apple. The stock remains close to 30% of the conglomerate's portfolio. Israel Englander bought 5.16
E-commerce conglomerate Sea Limited appears to be headed for smoother waters Will Healy (Sea Limited): Considering the successes of Amazon and MercadoLibre , e-commerce conglomerates have become a source of outsize investor returns.
According to a report published by multinational conglomerate Philips , staffing shortages in hospital settings are spurring demand for more digital infrastructure in the form of automation solutions. By contrast, Eli Lilly has identified a specific opportunity to pursue and is leveraging AI to find solutions. billion by 2028.
Berkshire Hathaway 's portfolio features every stock Buffett likes so much that he's put the conglomerate's money on the line. Jassy noted in Amazon's Q2 earnings call that "companies of all sizes are excited about leveraging AI." Warren Buffett doesn't offer a newsletter to investors that provides a list of the stocks he likes.
By this measure, it's unsurprising that Buffett's Berkshire Hathaway conglomerate has held the stock since 2012. Despite the total number of VeriSign's registered domains, 169 million, declining by 2% year over year in 2024, the company has leveraged its contractual ability to raise prices annually, driving growth.
What started as a small messaging service company called QQ has become a conglomerate covering gaming , entertainment, fintech, cloud computing, and more. The company smartly leveraged its user base in QQ to distribute its online games, which helped it scale the business rapidly and cost-effectively.
Analysts believe the company will grow earnings by an average of 66% annually over the long term, resulting from new business stacking on top of existing, profitable business (operating leverage). This is a level considerably lower than other e-commerce conglomerates like Amazon and MercadoLibre.
For one, it can leverage AI applications due to its position as the world's fourth-largest cloud company. Additionally, its most prominent non-China peers in e-commerce have all outperformed Alibaba and the S&P 500 this year, a factor that bodes poorly for the Chinese conglomerate. Rather than focusing on low revenue growth, U.S.
In truth, Amazon has become more a conglomerate underpinned by e-retailing than an e-commerce company. This segment solves a critical problem for the business while leveraging a regional challenge. Amazon Despite pioneering the e-commerce industry and growing to a $1.4
Amazon From an online bookstore to a tech conglomerate, Amazon (NASDAQ: AMZN) is arguably the prime example of growth stocks in the tech industry. Regarding e-commerce, it's beginning to leverage its logistics network, which cost the company billions to develop, to generate new income streams with its Supply Chain by Amazon.
The company has grown from its flagship soda product in the late 1800s to a beverage conglomerate with an unmatched global distribution network that will continue to quench the world's thirst. The conglomerate owns dozens of brands, selling products worldwide to an estimated 5 billion worldwide consumers.
That leverage puts added pressure on management if oil prices decline in the future, making it less profitable to drill. Moreover, Occidental's balance sheet includes substantial levels of debt following the CrownRock acquisition.
And I think automation technology company Emerson Electric (NYSE: EMR) , water products company Pentair (NYSE: PNR) , and industrial conglomerate 3M (NYSE: MMM) are ideal candidates in this regard. It's a good idea to buy stocks that have solid upside potential and limited downside. Here's why. Image source: Getty Images.
With the market's warm reception to Tilray Brands ' (NASDAQ: TLRY) latest earnings report, the marijuana conglomerate's outlook is looking better and better. And finally, it could also repay some of its nearly $137 million in long-term debt to free up some leverage for when it might need it down the line.
Food conglomerate Kraft Heinz (NASDAQ: KHC) is a rare example of his investments gone bust. But management has brought leverage down to 2.9 All-time great investor Warren Buffett is known far more for his winners like Apple and Coca-Cola than for his losing stocks. The stock price is down over 60% from a high over six years ago.
Both companies evolved from their initial business -- Baidu in search engine and JD.com in e-commerce -- to become the tech conglomerate they are today. Consumers rely on Baidu for information, while advertisers leverage the tech company's platform and huge user base to provide targeted advertising.
Life insurers like Aflac can be solid , and excess and surplus insurers like Kinsale should continue leveraging their expertise to deliver market-beating returns. Given that uncertainty, what you can do is maintain a long-term investment perspective and stay diversified across insurance stocks.
Class A and B shares of Buffett's conglomerate Berkshire Hathaway have gained 24.1% To further leverage its installed base of over 2 billion active devices, the company has also introduced a range of services such as iCloud storage, Apple Pay, Apple Music, Apple TV+, and the App Store. and 22.3%, respectively, in the past year.
Warren Buffett, despite long avoiding the technology sector, has made Apple (NASDAQ: AAPL) the largest holding at the conglomerate he heads, Berkshire Hathaway. While Apple hasn't revealed its AI vision publicly, Wall Street analyst Dan Ives of Wedbush Securities has theorized the company could leverage AI capabilities into its App Store.
Shares of his conglomerate, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) , have a long-term track record of growth that proves it. Given that crude oil and natural gas are commodities found and extracted the same way all over the world, a superior leader leveraging superior tools gives that company a serious edge over its competitors.
The state of Amazon Although investors should consider today's Amazon a conglomerate, most appear to associate it with its massive retail operations. These enterprises have successfully leveraged the benefits of retailing and IT, resulting in double-digit revenue growth for several quarters. Yet despite an enormous $1.9
The industrial conglomerate updated its full-year targets and gave investors insight into its strategic plans to get the company back on track toward more meaningful growth. The conglomerate serves various business-to-business customers in manufacturing, energy, logistics and warehouses, healthcare, and more.
It's no surprise that Buffett's conglomerate sees value in these stocks. The strong showing in direct-to-consumer not only leverages strong profit levers, but it enforces brand loyalty. Horton): Berkshire Hathaway's latest 13-F filing revealed three new buys, and they were all homebuilders, including D.R. Horton , Lennar , and NVR.
Shares of mini-conglomerate Boston Omaha (NYSE: BOC) fell 5.4% Missing the mark, and its co-CEO Boston Omaha is a diversified mini-conglomerate involved in billboard advertising, fiber broadband, insurance, and other financial businesses, and used to be co-run by Warren Buffett's great-nephew Alex Rozek. on Wednesday as of 1:30 p.m.
The industrial conglomerate has seven core segments -- automotive, test & measurement and electronics, food equipment, construction products, welding, polymers & fluids, and specialty products. It is now leveraging that pricing model through a growing home delivery service.
These companies have all leveraged technology to achieve staggering growth. 28 -- Warren Buffett's conglomerate, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). In other words, $1,000 invested in the conglomerate the day Buffett took over would be worth $57 million today. compounded annual return to investors.
When his conglomerate Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) Oxy is also known for using debt and leveraging up its balance sheet, which it will do to pay for its pending CrownRock acquisition. Famed investor Warren Buffett is known for finding quality businesses at a good value and holding them over time. that year.
Technically, it is a conglomerate , which means that it owns a lot of different companies. Usually, conglomerates own a few businesses in similar industries. But there's some nuance here when it comes to investment advice that you need to understand before you think you have to hit home runs every time you pick a stock.
These two stakes, along with its massive stake in Apple (NASDAQ: AAPL) , are set to provide the conglomerate with nearly $2 billion in dividend income over the next year. The main advantage of this is that it gives American Express leverage with merchants in terms of setting its processing fees.
The conglomerate's portfolio has substantially outperformed the benchmark S&P 500 since Buffett became CEO in 1965. of the conglomerate's stock investments. Instead, Apple leverages its loyal customer base to drive sales of its iconic iPhone. Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B)
is close to record lows, so Zoom could bolt higher as it leverages its name recognition and AI-related capabilities to attract more business. Sea Limited Southeast Asian conglomerate Sea Limited is another stock struggling to recover from the downturn. The company's price-to-sales ratio (P/S) of 4.5
The report cites unnamed sources familiar with the matter as revealing that the sale process, which was initiated by Cubicos owners Canadas Public Sector Pension Investment Board (PSP) and the Ontario Teachers Pension Plan (OTPP) has also attracted interest from Italian energy conglomerate Enel, as well as other infrastructure investors and funds.
In the cases of closed-end fund Guggenheim Strategic Opportunities Fund (NYSE: GOF) and industrial conglomerate 3M (NYSE: MMM) , I think there's a real risk that their dividends will be cut. There's nothing wrong with returning capital from asset sales to investors; closed-end funds can use leverage to generate returns.
Entertainment conglomerate Walt Disney (NYSE:DIS) delivered fiscal 2025 first-quarter financial results on Wednesday. The company leverages a combination of strong content creation and extensive distribution channels to maintain its position as a market leader. 5, that beat Wall Street's consensus estimates.
The conglomerate possesses an array of strong entertainment businesses. In its fiscal first quarter ended June 30, the conglomerate's revenue rose 12% year over year to 2.6 It's carving out a niche in the entertainment industry by leveraging its electronics expertise to deliver consumer experiences.
Under CEO Warren Buffett's leadership, the conglomerate has delivered annualized returns of nearly 20% over the past 59 years. These are a stellar source of cash flow for the conglomerate and help feed its growing cash pile. is one of the best. The stock has been a beacon of stability. yield on uninvested cash.
This segment provides cloud solutions -- such as cloud computing , Internet of Things (IoT) , and artificial intelligence (AI) -- that help enterprises leverage the latest technology to improve their business operations. Another up-and-coming business within Tencent that doesn't get much attention is its cloud and business services.
XPO had become too complex to be valued appropriately, and then-CEO Brad Jacobs argued that the stock was undervalued due to a conglomerate discount. will give GXO an opportunity to leverage its expertise and expand into industrial verticals across Europe. The logic for the move was straightforward.
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