But the aim is usually to diversify risk, not concentrate power, by taking capital from the original family business and putting it into a widely spread portfolio.
So number one, the outright rates of return that you can earn on strategies like that, I think are compelling compared to many things in the market over time, but they also are very good diversifiers in portfolios.
So we're seeing different industries talk about different strategies, but if I zoom out and think about this overall, the number one way companies are thinking about mitigating tariff risk is through diversifying supply chains.
And so the serial entrepreneurs can fall prey to that to go, well, I'm going to try this because this could strike, but I'm going to do this and hedge my bets over here.
I don't usually make promises, not because I don't think I can keep them, but because life has a habit of getting in the way, and I like to hedge my bets.
In the shadow of turbulence at the start-up, which in November led to the swift firing and rehiring of its boss, Sam Altman, Microsoft has begun to spread its bets.
It's not like it's in the stock market and if one of the companies in your portfolio tanks, it's okay because you've spread out the risk amongst multiple companies.
These are pre-assembled bundles of stocks and other investments that are designed in advance to be diversified, which spreads out the risk--and makes them less of a hassle.