There are many companies that Warren Buffett is either backing or owns a majority share in, and they range across a number of different sectors. When it comes to some companies that Warren Buffett has invested in he has taken a marginal loss, and although this is not common for the Oracle of Omaha he has made a few investing mistakes in his day. One such company is Dow Chemical, a company that is known for its successful merger with DuPont. The company which makes such products as automotive paint and rust protection for vehicle frames. Warren Buffett is known as a buy and hold investor, which is why some in the investment community were surprised when he decided to sell the entire Berkshire Hathaway position in the Dow Chemical Company.
Warren Buffett had been watching the company take losses for some time, and when Dow Chemical decided to dilute their shares it seemed as though Warren had enough. The Dow Chemical company does have a lot of value, and their products are recognized all over the world especially in the automotive community. But the company took a real hit during the recession, and this is when Warren had decided to make the purchase of the company shares. Unfortunately the company hadn’t recovered enough for Warren Buffett’s liking and before taking a huge loss in the company he decided to sell all of Berkshire Hathaway’s holdings in the company.
This was not a common move for Warren Buffett, but he can also see very far into the future and he might have seen what the ordinary market investors didn’t. Warren is keen on business and by selling Dow Chemical he was able to free up the war chest for Berkshire Hathaway to make more acquisitions and this was a smart move for all of the shareholders.