how holding companies make money
large holding companies may have several income streams depending on the companies in their portfolio the most straightforward way to make money is through equity in their subsidiaries holding companies can benefit from dividends in the subsidiary s share price as well as by selling equity in companies that gain value in addition holding companies can also profit from synergies between their subsidiaries rather than have separate information technology it human resources hr or administration teams for each company a holding company can centralize these services and then sell them to the subsidiaries holding companies can also centralize equipment or other assets for lease by all of their companies example of a holding companyan example of a well known holding company is berkshire hathaway which owns more than 70 companies including clayton homes duracell geico fruit of the loom rc willey home furnishings marmon holdings and kraft heinz berkshire hathaway also has stakes in large public companies such as coca cola 1