Subsidiaries

Subsidiaries aren’t directly connected to trading stocks, so you may be wondering why I’m writing about them. Learning everything about a company you’re considering investing in is essential (Not literally everything, that would be almost impossible). One major part of business is subsidiaries. For this example we’ll use Berkshire Hathaway. The Berkshire Hathway stock is currently the most expensive stock in the world. In fact, their stock has never split. Let’s think about B.H. (Berkshire Hathaway) as the “parent” company. The subsidiaries are the parent companies “kids”. A company owns all their subsidiaries, which are like companies run by the “parent” companies. If you invested in B.H. you’d invest in all of it’s subsidiaries at the same time. B.H. has an unbelievable amount of subsidiaries including Duracell and Geico. To see a complete list click here. In some cases a company doesn’t own 100% of it’s subsidiaries like you’ll see if you click on the link above but they still do own part of the company. Just like if you were to buy a stock in a company. You wouldn’t own the whole company, but you would own a tiny bit of it.

That’s all for now, Ben

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