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 contributor Tyler Crowe lands on with this argument and what Dow has in its future with the petrochemical manufacturing part of the business.

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  • 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.


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Tyler Crowe

Energy and materials columnist for

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