Warren Buffett Squares Off With Hedge Funds Over Dow Chemical

It's not very often that Warren Buffett gets in a beef with someone regarding the holdings in Berkshire Hathaway (NYSE: BRK-A  ) (NYSE: BRK-B  )  But the proposal made by Third Point hedge-fund CEO and activist investor Dan Loeb to spin off Dow Chemical's (NYSE: DOW  ) petrochemical manufacturing business didn't go over well with Buffett.

In conversations with Dow CEO Andrew Liveris, Buffett said he was happy with the moves the company has made so far, and they were in line with investors who -- to quote Liveris -- "will stay versus investors who will leave."

So, who is right in this case? Loeb does have some valid points in his letter to Dow management, but does that mean the company should pretty much completely split in two? Tune into the video below to find out what side Fool.com contributor Tyler Crowe lands on with this argument and what Dow has in its future with the petrochemical manufacturing part of the business.

Warren Buffett has made billions through his investing and he wants you to be able to invest like him. Through the years, Buffett has offered up investing tips to shareholders of Berkshire Hathaway. Now you can tap into the best of Warren Buffett's wisdom in a new special report from The Motley Fool. Click here now for a free copy of this invaluable report.


Read/Post Comments (1) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 31, 2014, at 3:41 PM, funfundvierzig wrote:

    The long term trajectory of DuPont over the past decade has been one of severe shrinkage and decline. Why in the world should Andrew Liveris, Dow CEO, try to mimic the dismantling of the futilely shrunken and intractably weakened DuPont conglomerate?

    BASF is a far superior business model. Copy BASF and its superlative leadership.

    ...funfun..

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2816629, ~/Articles/ArticleHandler.aspx, 9/16/2014 7:43:37 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement