Warren Buffett Squares Off With Hedge Funds Over Dow Chemical

By Tyler Crowe – Jan 30, 2014 at 10:25AM

NYSE: DOW

The Dow Chemical Company

Take that, Third Point: Warren Buffett thinks splitting Dow Chemical in two is a bad idea

It's not very often that Warren Buffett gets in a beef with someone regarding the holdings in Berkshire Hathaway (BRK.A -0.34%) (BRK.B -0.01%) But the proposal made by Third Point hedge-fund CEO and activist investor Dan Loeb to spin off Dow Chemical's (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.

Fool contributor Aimee Duffy has no position in any stocks mentioned. Fool contributor Tyler Crowe owns shares of Berkshire Hathaway. You can follow them on Twitter @TMFDuffy and @TylerCroweFool, respectively.

The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.