Warren Buffett has fully exited BYD, ending a 17-year investment. According to a report from Reuters, Buffett’s Berkshire Hathaway’s investment in the Chinese automaker is recorded as zero, down from USD 415 million at the end of 2024.
Buffett’s company began investing in Shenzhen-based BYD in 2008, when it paid USD 230 million for about 225 million shares, equivalent to a 10 percent stake at the time.
It began selling those shares in 2022 after BYD’s share price had risen more than twentyfold.
Li Yunfei, BYD’s general manager of branding and public relations, thanked Berkshire for its “investment, help and companionship over the past 17 years.”
He described the stake sale as a “normal” stock investment trade.
Buffett’s exit from BYD comes as the automaker’s Chinese market sales, which make up nearly 80 percent of its volume, fell for a fourth straight month in August. It has cut the annual sales target by as much as 16 percent to 4.6 million vehicles.
HE KNOWS! TIME TO EXIT
ReplyDeleteBuffet the expert in stocks market, he knows best. Byd's stocks price keep falling down, the hype has gone, now realities bite.
ReplyDeleteits a ticking bomb and buffet saw the timing
DeletePano pag bibitawan din ni ayala byd dito sa pinas?
ReplyDeleteNothing new for them. Track record shows they will leave it when the time is right. Sorry na lang sa mga may hawak ng byd.
DeleteBYD fans are coming to haunt you for telling the truth
DeleteHow can this article be accurate when the sales data of BYD are up 23.1% from Jan to Aug of this year? May 2025 saw a growth of 15.1% over May of 2024 while August figures have a modest increase of .15%.
ReplyDeleteThis article was meant to paint BYD in a negative light because Berkshire Hathaway have cashed in on their investment.
The figure comes from Reuters. Have an issue? Take it up with them.
DeleteI made no commentary whatsoever on Berkshire cashing in on their investment, but some have said that Buffett is seeing BYD sales cool in the recent months and couple that with slowing sales in China and exports not growing fast enough made him think it's time to move on.
there's just 1 China boy triggered. he needs to get higher social credit
DeleteThe sales data from BYD isnt what it seems. Zero mileage car sales and unpaid suppliers bump up the sales and fudged the actual data. Cant trust the chinese auditors especially with the sales numbers being used as propaganda for the CCP
DeleteBYD cars arent built to last. those ICE models are converted EV and its very unstable. rust everywhere, battery placement is off and prone to damages
Deleteit seems Bad news for BYD keep coming, AC BYD tang pricing also a bad news. when it rains it pours
ReplyDeleteBYD in china has big financial issues and trying to recover by dumping it cheap thru export. This cant go on forever. ultimately the consumers will be taking all the damages
DeleteMy guy, the author is merely reporting the facts as it is.
ReplyDeleteTheir is no issue here. Its normal for Berkshire to invest and then sell when the stocks already reach its peak price. They do it to Microsoft, Apple and Tesla as well. At its peak, the worth of those shares reach $4B from an initial investment of $200M+. BYD is publicly listed, so it means those shares were also bought by other investors. BYD has a lot to thank for Berkshire for because of them, other foreign investors followed suit in investing in BYD. BYD is now so strong a Company they don't need Berkshire's money. No. 3 in terms of capitalization behind Tesla and Toyota.
ReplyDeleteAnother BYD employee here
DeleteThe fact that you have to cover up there is no issue XD.
Deletei hope you got good incentives from ccp
Neither Berkshire Hathaway nor Warren Buffett have ever owned Tesla stock. How can they exit a position they've never taken in the first place? Get your facts straight please. Also, if Berkshire truly believed in BYD's future prospects, they would've kept a stake even if they were winding down their holdings just like what they did the last time they sold their BYD shares. The mere fact that they fully exited their position is quite telling.
DeleteWhen someone “completely” unloads, it means he sees something in the future that is not worth investing/risk.
DeleteHolding for 17 years and selling slowly over 3 years should speak enough for itself for people who understand.
DeleteIt's also not a big surprise they would sell. Their investment made over 20x return already and the current (as well as the previous) US administration is blocking Chinese car imports so growth in the US market's not happening soon (even if Trump doesn't try to hold on to power after 2028 why gamble up to that point?).
Selling at a high is the smart play even if there's a chance the value could be even higher if they stay. After all, BH has investors to answer to if they gamble away a sure 20x return.
I'd say don't bother trying to explain stocks and investing to people who just want to hate on something but I did that anyway (and I am no expert) so for those who are interested that's my take on it.
It means Berkshire Hathaway sees the stock as overvalued, hence the sale. Whether due to regulatory pressure or sales projections, it doesn’t matter. What really matters for Berkshire is that they’ve fully divested from BYD, they no longer have any exposure to the stock come what may.
DeleteTalking about overvalued stocks, how bout that Tesla stock huh? 🤣
DeleteHow tedious. Whenever BYD is mentioned, someone always has to bring up Tesla. Is Tesla overvalued in terms of how Berkshire Hathaway values their investments, i.e. fundamentals? The answer is a big, fat yes. However, Tesla's valuation is not based on fundamentals alone. It's is very much a speculation play. Investors are betting big on Tesla's push in the fields of AI, automation, and robotics. If you've been paying attention to Wall Street trends, AI is where the hot money is flowing to right now. Hence, the sky high valuation. Contrast that to BYD, they really don't have the same growth story. BYD are more in line with traditional carmakers, they manufacture cars that just happen to be EVs.
DeletePeople paying attention, and know the history of the market, know that AI (with the current investment frenzy) is a bubble. Tesla's blown past its own timelines enough times and they're not even the best positioned in those respective fields.
DeleteSometimes DREAMS become NIGHTMARES
ReplyDeleteMas mabili yung Chery Tiggo 2 Pro kaysa sa Toyota Vios.
ReplyDeleteKung bibili ka ng Toyota Vios XP150 1.3 XLE Automatic price of 908,000 plus addional 250,000 para mabilis lang mairelease. Parang nakabili ka ng premium luxury car.
Chinese cars are disposable cars.
ReplyDeletePhilippine cars are virtually non-existent. So yeah, keep on harping about Chinese cars.
DeletePasara na yung may Market Capital na $134B
ReplyDeleteLol. I know you’re being sarcastic, but your comment reeks of ignorance. Not everything is black and white.
Delete