You are wrong about a Holding company. How can a holding company make any investment when the subsidiaries aren't generating any revenue. When a Holding company is surviving off of investors money and not from Operations the Holding company is worthless.
Isn't this odd - you had better call Berkshire Hathaway and tell them they don't understand how a holding company operates.
"Revenues: (in Millions)
Insurance and Other:
Insurance premiums earned $18,087
Sales and service revenues $40,220
Leasing revenues $1,887
Interest, dividend and other investment income 2,861
Railroad, Utilities and Energy:
Freight rail transportation revenues $6,612
Energy operating revenues $4,935
Service revenues and other income $1,578
Total revenues $76,180"
Damn Berkshire doesn't know what they are doing.
"It is a holding company. Holding companies get their income from investments, not revenue." Damn you couldn't be more wrong.
"There are three ways in which subsidiaries generate value for the holding company:
Selling and purchasing assets.
Providing services.
Profits from dividends and shares of stock."
The Holding company takes the profits from each subsidiary - and they can take more stock from each subsidiary.
Basically the Holding company takes the (Revenue - COGS - SGA).
When a holding company doesn't have any subsidiaries that aren't generating any revenue they are worthless just as is the Holding company.
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