Holding companies are conglomerates that own the securities of other firms. They usually maintain voting control of these companies, as well. A good example is Warren Buffett's Berkshire Hathaway (NYSE:BRKa, BRKb), which owns Dairy Queen, Fruit of the Loom, GEICO, See's Candies, Executive Jet, The Pampered Chef, Clayton Homes, and Dexter Shoe Company, among many other businesses.
Another major holding company is Fortune Brands (NYSE:FO), which owns companies making distilled spirits (Jim Beam, DeKuyper, Ronrico), golf equipment (Titleist, Cobra, FootJoy, Pinnacle), home products (Moen faucets, Aristokraft and Schrock cabinets, and Master Lock padlocks), and office products (ACCO, Day-Timers, Swingline).
While many companies routinely gobble up other companies, they frequently aim to blend these acquisitions into their operations. Holding companies keep the businesses they buy more separate.
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