Diversification for Cycle Resilience

“In a sense, that’s the point. Investing in a broad array of businesses is meant to prevent a company from being too heavily dependent on any one of them. Diversification can be the ultimate low-risk business strategy. The best built conglomerates include subsidiaries that, at any point in the economic boom-bust cycle, flourish when its siblings don’t.”

“was Tisch’s main public identity. His strategy, however, was still to be diversified, to buy low, and to hold on as long as the return was re- spectable.”