Bull runs show diversification in poor light. The Conglomerates Sector is a nearly inevitable victim when one or the other industry experiences a surge in demand. Diversified companies cannot refocus their resources to leverage such opportunities fully.

The shoe changes feet in troubled stock investing times. A conglomerate has best chances of surviving a depression. Diversification is also a meaningful hedge against rampant inflation. This approach can help in stock investing as well.

The herd mentality is a bane of stock investing. We pour hard-earned capital to copy what the media and stock brokers tell us others do. The benefits of contrarian stock investing deserve greater attention. A tangible step in this direction is to diversify every stock portfolio.

Not all conglomerates succeed. Some lose the benefits of operational autonomy because they are top-heavy. Others build high fixed costs by decentralizing even common management functions. The centralization-decentralization balance drives business success in