GS - How Warren Buffett Poured $3B Into This Company During 2008 Financial Crisis And Doubled His Money | Benzinga
During the 2008 financial crisis, Warren Buffett stepped in to support Dow Chemical through a significant investment via his firm, Berkshire Hathaway Inc (NYSE: BRK). This move not only enabled a crucial acquisition for Dow but also proved to be a profitable venture for Berkshire Hathaway.
What Happened: In 2008, Dow was on a mission to acquire manufacturer Rohm and Haas for a whopping $18.8 billion, a strategy to transition from bulk chemicals to specialty chemicals, according to Insider.
To facilitate this acquisition, Dow sought financial backing from Berkshire Hathaway, which agreed to inject $3 billion in return for preferred shares yielding an 8.5% annual dividend.
The financial backing became a lifeline for Dow, especially when a joint venture with Kuwait's Petrochemical Industries Company, which was supposed to ...