GE started out its life making refrigerators, toasters, and other "high-tech" devices in the early part of the 20th century. Previous to the General Electric inventions, housewives would simply soak their laundry in water, throw in a bar of lye soap, and have their thinnest child lean on the kitchen counter while they scrubbed out filth on their washboards.
But electric appliances weren't enough to GE, as company management felt that being exposed to one product line left them vulnerable to the economic cyclicality of upgrades. So they began to acquire companies in other, related industries in order to diversify the volatility of their product lines.
Because so many households bought appliances on credit, GE went into finance. The diversification acquisition spree ended up extending into television entertainment (yes, at one point they owned NBC) and went beyond. Diversification acquisitions aren't necessarily good...they are just a Thing.
Related or Semi-related Video
Finance: What are Diversified v. Non-Div...2 Views
Finance a la shmoop what are diversified versus non diversified funds?
all right diversified a few eggs each in lots of baskets non-diversified all your [Baskets of eggs appear]
eggs in one basket diversified a mutual fund with 128 different growth equities
in it like Coke, Disney, JPMorgan and Tesla non-diversified Mark Zuckerberg [Diversified and non-diversified company's appear]
portfolio diversified a portfolio with stocks bonds real estate commodities and
fancy artwork from some talented dead people non diversified when your entire [Undiversified portfolio appears]
holdings comprise this.. when you invest in a diversified fund you spread your
money around ie stick your fingers in a whole bunch of different pies so that if [Woman puts finger into pie]
one pie turns out to be well poisoned it won't mean financial death at least not
unless you're a thumbsucker [Baby sucking thumb]
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