Question

Loews corporation, a conglomerate with 15 billion usd in revenues, competes across several industries including oil and gas, tobacco, watches, insurance, and hotels. its related diversification strategy is to buy low and sell high as in the example where they bought six oil tankers for 5 million usd and then sold them eight years later for 50 million usd

Answer 1

The statement above is FALSE.
Loews conglomeration is into many businesses including hotels, insurance, watches, oil, gas, tobacco, etc. The diversification strategy of the company is to buy up firms that are in financial mess, turn them into profitable ventures and then sell them at a premium. They also diversified by investing into new business fields.