portfolio business definition

1. A group of assets. For individuals, a portfolio might include stocks, bonds, rental real estate, bank accounts, and collectibles. For businesses, a portfolio is all of the assets included on the firm's balance sheet. For example, a real estate trust holds a portfolio of office rental properties. Also called investment portfolio. See also diversification.
2. A collection of creative work that can be made available to an employer or potential employer.

Case Study Businesses are constantly assembling and adjusting their portfolios of assets in an attempt to increase the returns they earn and reduce the risks they face. For example, a grocery chain opens new locations while closing or selling underperforming stores. On a smaller scale, retailers adjust the products they offer. A large, diverse company such as General Electric expands in some businesses (lending) at the same time it exits other businesses (insurance). In 2006 beverage giant Coca-Cola acquired Fuze Beverage, LLC in an effort to enhance its product portfolio, which was heavily weighted with carbonated beverages. Financial analysts and Coke's own bottlers had complained the company lacked competitive offerings of noncarbonated beverages that were being demanded by consumers. Fuze had commenced operations in 2001 and had grown rapidly with offerings of tea and energy drinks. Expanding its portfolio to include this new company allowed Coca-Cola to be a stronger competitor in a product area that promised higher sales growth than its existing products.