Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

10 Most Successful Holding Companies in the US

The 10 most successful holding companies in the US have exhibited remarkable growth in their, ahem, holdings over the years, through thick and thin.

When we talk about holding companies, there are quite a few divergent definitions of the term. The most common type of company we associate with the term “holding company” is Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.A). Unsurprisingly, it’s the quintessential holding company, as it derives much of its wealth from its multitude of holdings and investments, some of which it helps manage and operate, while others it exerts little control over.

But there are also other types of holding companies. There is a setup called a bank holding company, which owns, but does not necessarily run, one or more banks. The biggest banks in America converted into holding companies during the 2008 financial crisis for liquidity and funding purposes, so we’ll see a lot of them in this list.  Other holding companies seem to operate like conglomerates, with diverse businesses in which they have more direct involvement. We see this in fields such as media and telecommunications, in which a parent company has various holdings that conduct actual business operations.

Just to be clear, not all conglomerates can act as holding companies. In fact, some companies refuse to convert into holding companies despite shareholder pressure. For this list, we considered companies that are classified as holding companies by industry taxonomy systems such as the Standard Industrial Classification or the Global Industry Classification Standard. By accepting either standard, we’ve uncovered a few surprising entries.

background, modern, room,

ImageFlow/Shutterstock.com

For the purposes of this article, we measured the success of a holding company via the growth of its market capitalization between June 21, 2012, and June 21, 2017. We chose a five-year range of measuring growth in market cap for the companies because it is a sufficient range of time with which to determine recent success. We think that one key characteristic of a successful holding company is its ability to be resilient in the face of trouble and still grow in the process and these ten companies have done just that.

The 10 most successful holding companies in the US are Alphabet Inc (NASDAQ:GOOGL), Berkshire Hathaway, Chubb Ltd (NYSE:CB), JPMorgan Chase & Co. (NYSE:JPM), McDonald’s Corporation (NYSE:MCD), Nike Inc (NYSE:NKE), Starbucks Corporation (NASDAQ:SBUX), Time Warner Inc (NYSE:TWX), Walt Disney Co (NYSE:DIS), and Wells Fargo & Co (NYSE:WFC). They are ranked according to how much the market capitalization of these US-headquartered companies has grown over the past five years. Check out the list beginning on the next page.

As for which holding company is the biggest among its peers, you’ll have to check out Insider Monkey’s list of the 10 largest holding companies in the world for the full details.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...