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Buffett $3 Billion Dow Preferred Stake May Be Repaid-Bloomberg

|Includes: BRK.A, BRK.B, DowDuPont Inc. (DWDP)

One of Warren Buffett's attractive 2008 preferred stock investments seems likely to be repaid soon, as Dow Chemical (DOW) awaits proceeds from a legal dispute with Kuwait. Dow has really benefited from the acquisition of Rohn & Hass Co. which was enabled through Buffett's capital in a stressed credit environment. It will be difficult for Warren Buffet and Berkshire Hathaway (BRK.A, BRK.B) to find as attractive of a risk/reward opportunity in any fixed income security, but it will add to ammunition that can be used for equities or entire companies. Redeeming the securities will lower Dow Chemical's cost of capital so the sooner they can redeem it the better.

Disclosure: I am long BRK.B.