A conglomerate is an association of one or more companies, that focus on activities that differ from the original company. As a result of the creations of different conglomerates, today only six media giants have control of 90% of the media in the United States. To decide if conglomerates are good or bad, you have to choose only a perspective and decide from there. I will start with inside conglomerate perspective.
Investing in a conglomerate is a lot safer than just in a small company that depends on just one source of income. Is safer to invest in a conglomerate because you are investing money in different activities. For example, investing at Disney conglomerate you are investing in TV channels, Parks and Resorts, clothes, and products. And, if TV channels are not really giving you enough money, you could still get enough money from Parks and Resorts, and products.
On the other hand, conglomerates can also be seen as a way to have control over the world because you have influence everywhere. For example, when it was known that Johnson and Johnson powder caused cancer, not all their products got a decreased in sell. This is due to people thinking that Aveno is better than Johnson and Johnson when in reality they are associated. Like everything conglomerates have its pros and cons.
Investing in a conglomerate is a lot safer than just in a small company that depends on just one source of income. Is safer to invest in a conglomerate because you are investing money in different activities. For example, investing at Disney conglomerate you are investing in TV channels, Parks and Resorts, clothes, and products. And, if TV channels are not really giving you enough money, you could still get enough money from Parks and Resorts, and products.
On the other hand, conglomerates can also be seen as a way to have control over the world because you have influence everywhere. For example, when it was known that Johnson and Johnson powder caused cancer, not all their products got a decreased in sell. This is due to people thinking that Aveno is better than Johnson and Johnson when in reality they are associated. Like everything conglomerates have its pros and cons.