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Definition of 'Diversified Company'
A company that has multiple, unrelated businesses. Unrelated businesses are those which (1) require unique management expertise, (2) have different end customers and (3) produce different products or provide different services. One of the benefits of being a diversified company is that it buffers a company from dramatic fluctuations in any one industry sector. However, this model is also less likely to enable stockholders to realize significant gains or losses because it is not singularly focused on one business.
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Investopedia explains 'Diversified Company'
Companies may become diversified by entering into new businesses on its own, by merging with another company or by acquiring a company operating in another field or service sector. One of the challenges facing diversified companies is the need to maintain a strong strategic focus to produce solid financial returns for shareholders instead of diluting corporate value through ill-conceived acquisitions or expansions.
Some of the most well-known American diversified companies are GE, 3M, Sara Lee and Motorola. European diversified companies include Siemens and Bayer; Asian diversified companies include Hitachi, Toshiba, and Sanyo Electric.
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Search results for 'Diversified Company'
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http://stocks.investopedia.com/stock-analysis/2009/The-Over-diversified-Diversification-Portfolio-MKL-BRK.A-BRK.B-EFA-KMX-DEO-L-CNA0903.aspx
... makes matters worse in this particular instance is the portfolio also holds Berkshire
Hathaway (NYSE: BRK.A, BRK.B) "B" stock, itself a diversified company. ...
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http://www.investopedia.com/ask/answers/08/KSOP.asp
... company stock. I am now concerned that I'm not diversified and would like
to move out of company stock and into mutual funds. Is this ...
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http://stocks.investopedia.com/stock-analysis/2011/Coca-Cola-A-Great-Company-An-Iffy-Stock-KO-PEP-NSRGY-CCK-COT-BUD-TAP1020.aspx
... often swirls around Coca-Cola is whether the company needs to emulate companies
like PepsiCo and Nestle (Nasdaq:NSRGY) and become a more diversified company. ...
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http://stocks.investopedia.com/stock-analysis/2009/Why-GE-Makes-Cents--GE1210.aspx
... On the flip side, Tyco (NYSE:TYC), which is a diversified company with fire protection
services and safety products, trades at 14 times this year's estimate. ...
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http://stocks.investopedia.com/stock-analysis/2009/DiversifiedsConglomerates-With-Upside-TYC-UTX0601.aspx
... The Others Another diversified company with potential for a strong rebound
is General Electric (NYSE:GE). Insiders were buying when ...
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http://stocks.investopedia.com/stock-analysis/2010/Pullback-Equals-Opportunity-In-Conglomerates-GE-TYC-HON-UTX0608.aspx
... great opportunity. General Electric is not the only conglomerate or
diversified company that is worthy of attention. Other Plays ...
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http://stocks.investopedia.com/stock-analysis/2011/National-Fuel-Gas-Company-To-Continue-Marcellus-Push-In-2011-NFG-EGN-EQT-EOG0208.aspx
... Diversified Energy Company National Fuel Gas Company may have one of the largest
exploration and production operations that most investors have never heard of ...
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http://www.investopedia.com/exam-guide/finra-series-6/securities-industry-regulations/investment-company-definition.asp
... Non-diversified companies, are like the name implies, any management company that
is not diversified. Advertisment - ExamPrep continues below. ...
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http://stocks.investopedia.com/stock-analysis/2008/Let_Johnson__Johnson_Band-Aid_Your_Portfolio_JNJ.aspx
... assume. NVS gets 63% of its sales from prescription drugs (branded and
generic), whereas JNJ is a more diversified company. (Find ...
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http://stocks.investopedia.com/stock-analysis/2010/Who-Said-Conglomerates-Arent-Sexy---GE0128.aspx
... Based in Connecticut, and known for its position in the HVAC space, United Technologies
(NYSE:UTX) is another diversified company worth a second look. ...
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