Legendary investor Warren Buffett is seeing value in chemical manufacturer
Mergers & Acquisitions Increase Investment Appeal
Deal activity within the chemical market is ongoing at a healthy pace as valuation metrics are attractive and firms aim to grow revenue.
Legendary investor Warren Buffett is seeing value in the chemical manufacturer. Berkshire Hathaway (BRK-B) lately announced that it's obtaining Lubrizol (LZ) for $9 billion.
Earlier, DuPont provided to buy Denmark's Danisco (DNSOF.PK) for $6 billion to grow into biofuels and food enzymes. Air Products & Chemicals (APD) attacked Airgas (ARG) in hot pursuit before the latter been successful in remaining independent through getting court approval of their poison pill provision.
Mutual Funds and ETFs to purchase caffeine Manufacturer
There are many possibilities for investors to experience a harmful chemical group.
Fidelity Select Chemicals -- FSCHX
Among mutual funds, several indexes and positively managed funds purchase the types of materials sector. However, with regards to the harmful chemicals group particularly, Fidelity Select Chemicals may be the only pure-play mutual fund that concentrates on this group.
Chemical ETFs
Within the ETF space, there's no pure-pay chemical ETF. However, several fundamental materials and agriculture ETFs could work as appropriate proxies since most of them have 40% or even more of the assets committed to chemical stocks.
Market Vectors Agribusiness (MOO), Materials Select Sector SPDR (XLB), iShares DJ US Fundamental Materials (IYM), Vanguard Materials (VAW), and PowerShares Global Agriculture (PAGG) fit this description and also have internet assets well over $100 million each.
