Diversified companies are businesses that operate in multiple industries or sectors, reducing their reliance on a single market. This strategy helps them manage risks and capitalize on various growth opportunities. For example, a company might produce consumer goods while also investing in technology or real estate. By spreading their investments across different areas, diversified companies can stabilize their revenue streams. If one sector faces challenges, the others may still perform well, providing a buffer against economic fluctuations. This approach is often seen in large corporations like General Electric or Berkshire Hathaway, which have interests in various fields.