Conglomerates Sector

Your body is made of oxygen, carbon, hydrogen, nitrogen, calcium, and phosphorus. It’s diverse. Unique. And not one simple thing.

Unless you are made of 3% vodka, like that Uncle who isn’t allowed back to Thanksgiving.

A conglomerate is a firm with many diverse lines of business. Think of those different firm interests as different elements in the body.

The stock market consists of many different sectors.

There's the tech sector, the consumer goods sector, the utility sector, among others. But there is also a sector for companies that own so many random things they can't be defined by one of the Global Industry Classification Standard market sectors.

Typically, people don't refer to this sector much by name anymore as it dates back to a period when a time when saturated digital coverage of the markets was decades away.

Today, analysts will assign a conglomerate into a sector to which the bulk of its business operates.

For example, despite its ample consumer goods and utilities operations, Berkshire Hathaway is classified under the financial services industry due to its significant insurance businesses.