Australia's largest stock trading and investment forum Australia's #1 stock forum

AGO

Click for more information

0.00%

4.5¢ atlas iron limited

I would think moving from.telecommunations industry to the motor...

First 9 Last

Share
Profile

Follow
Knuckle head

11 Posts.

13/10/17

13:37

Post #: 27885321
Share

Originally posted by jared444 ↑

Although diversification is perceived to decrease risk it actually increases risk. This is because you run into a whole bunch of new challenges you have never run into before. This includes hiring people you don't know, learning mining processes you aren't familiar with, operating mines with no experience in them, the list goes on. It's less risky to invest in an already diversified business but it's a different story investing in one that is trying to diversify. It's an extreme example but look at how Apple wanted to move into the automotive industry and start an Apple Car. It was a disaster. They tried diversifying in a field they knew nothing about and failed epicly. You are essentially starting a new business that happens to sit in the same legal company.

Expand

I would think moving from.telecommunations industry to the motor vehicle industry would be a tad different from diversifying
From the mining industry to the mining industry.
Only thing that would change is what you are mining.
Principal stays the same.

AGO Price at posting: 1.7¢ Sentiment: Buy Disclosure: Held
9 Upvote

0 Great analysis

Reply

Top Stories

PFE

Pantera begins drilling of maiden test well at Smackover

QHL

Aerospace smallcap Quickstep Holdings jumps nearly 100% after 40cps takeover offer

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

C29

C29 Metals wins Kazakhstani uranium drill run green tick, Kazatomprom talks mature

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

There are more pages in this discussion • 23 more messages in this thread...

First 9 Last

Add AGO (ASX) to my watchlist