Conglomerates: reason d etre

Conglomerates around the world have been favorites with investors as long-term investments. A recent worldwide study found that of the top 35 companies that delivered the most shareholder value 20 were conglomerates.rnEven locally, a few dominant business groups have played a key role in the development of the economy.rnThis week we take a look at some of these business groups to find what drives these organizations in an era where everybody wants to concentrate on core activities.rn
The listed conglomerates in the country have been the darlings on the Colombo bourse over the last few decades.rn

rnMost of these very Liquid stocks have been offering consistent returns and Capital growth.rn

rnMarket watchers say having diversified business interest help these companies to weather the storms when one area of the business takes a beating.rn

rnThis is particularly true of companies like the Aitken Spence group, which has a heavy exposure to the tourism sector.rn

rnWhen the government opened u