I read in Peter Lynch's book about investing titled "One Up on Wall Street" that a lot of companies that had been successful selling just one product do not do so well when trying to diversify, that is start marketing a new, completely unrelated product. Lynch calls this "diworsification."
Well, what about a company like GE? They have a very diverse lineup of products they manufacture and sell, so why can they diversify and still be successful?
Many thanks,
C.L. |
