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Posts tagged with Diversification

Is diversification overrated?

Which company would you rather own stock in: Google or Yahoo? Chances are, like most people, you'd respond 'Google'. And for good reason: by just about every measure, Google is by far the better company.

But that isn't stopping Yahoo CEO Carol Bartz from giving some advice to the search giant. Last week, she told BBC News that Google needs to diversify its business. "Google is going to have a problem because Google is only known for search … it is only half our business; it’s 99.9 [percent] of their business. Google has to grow a company the size of Yahoo every year to be interesting," she said.