Capital Cycles, Conglomerates and Portfolio Break-ups

For most of the twentieth century the largest American manufacturers were conglomerates. General Electric made light bulbs, jet engines, gas turbines, locomotives, medical scanners and appliances, and through GE Capital it also lent money, leased aircraft and insured lives. Honeywell made thermostats, aircraft avionics, refrigerants and warehouse robots. 3M made sandpaper, tape, dental products, respirators and, until 2025, PFAS. DuPont made gunpowder, then nylon, Kevlar, seeds and electronic materials. The logic was that one management system and one balance sheet could run many businesses better than the stock market could fund them separately.