The Most Renowned Investor in the World Achieved Exceptional Gains with BYD | Carscoops

      Seventeen years after a monumental bet that transformed millions into billions, Warren Buffett and Berkshire Hathaway have sold their stake in BYD.

      

      Berkshire Hathaway has completely divested its 17-year investment in BYD.

      Warren Buffett initially acquired 225 million shares of BYD in 2008 at HK$8 each.

      In 2024, BYD delivered 4.27 million vehicles, with 1.76 million being electric vehicles.

      In 2008, a bold wager was made on a relatively obscure Chinese automaker that few outside of China were familiar with. Warren Buffett's Berkshire Hathaway invested HK$1.8 billion ($231.7 million) in BYD, a company that was still in its nascent stages and largely untested on the global scene. Now, seventeen years later, the gamble has significantly paid off, prompting Buffett to decide that the time has come to step away.

      A recent quarterly filing from Berkshire Hathaway Energy indicates that the firm has sold its entire interest in BYD. This divestment was not instantaneous; starting in 2022, the company gradually reduced its holdings through 15 different transactions, all recorded in financial documents. Prior to the sell-off, Berkshire's stake was estimated to be worth about $7.7 billion.

      From Low-priced Stock to Industry Leader

      When Buffett first bought 225 million shares of BYD, following the recommendation of investment partner Charlie Munger, the stock was valued at merely HK$8. CNBC reports that since Buffett's investment, shares of BYD have skyrocketed by 3,890%. While the exact profit made by Berkshire Hathaway from its BYD investments is not specified, it is undoubtedly in the billions of dollars.

      Following the sale, BYD’s general manager for branding and public relations, Li Yunfei, expressed gratitude to Buffett and Berkshire Hathaway for their investment. At one point, the investment firm held approximately 10 percent of the Chinese car manufacturer.

      The news of the divestment had an immediate impact on the market, resulting in a 3.4 percent drop in BYD shares, making it one of the poorer performers on a Hong Kong index of Chinese companies.

      “In stock investments, buying and selling is a regular occurrence,” said Li. “We are thankful for the recognition from Munger and Buffett of BYD, as well as their investment, support, and partnership over these 17 years. We value all long-term investments.”

      Last year, BYD sold 4.27 million vehicles globally, inclusive of 1.76 million battery-electric vehicles and 2.49 million plug-in hybrids. This year, they aimed to deliver up to 5.5 million vehicles; however, due to heightened competition and a slowdown in their domestic market, they have revised this forecast to 4.6 million.