Investing in any of the three conglomerates over GE would have been a wise decision over the past three years. United Technologies and 3M gained about 20%, while Danaher climbed 7%. In contrast, GE lost 47% of its value, dragged down by the finance unit, a business that should never have gotten so big.
Conglomerates carry unique strategic risks, as overzealous executives build empires and, thus, take on too much. United Technologies has remained within its abilities, so it offers investors exposure to equity markets with more stable prospects.
-- Reported by David MacDougall in Boston.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV