Reliable conglomerates in an unreliable world
Add BT as a preferred source
WHAT must it be like to own a business that could do well under any economic condition? It could be a bit like running an ice cream stand that also sells umbrellas. It does not matter whether it is sunny or pouring with rain - the tills should keep ringing, regardless of weather conditions.
Owning shares in a conglomerate is a bit like being a shareholder of that canny ice-cream vendor. Conglomerates are made up of unrelated businesses in which they have stakes - and often quite significant stakes.
The key is that these separate subsidiaries should operate independently. That said, the parent company, often because of its considerable ownership in them, will probably want to have some input into how they are run.
TRENDING NOW
On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart
That ‘cheap’ Malaysia condo could cost Singapore buyers far more than they think
More upside ahead for DBS, OCBC, UOB as wealth fees power Q1 earnings
These little-known SGX tech stocks are beating the market. What’s driving them up?
