BREAKING: Warren Buffett’s Berkshire Hathaway has officially exited its stake in Chinese automaker BYD, a move confirmed by a recent filing. This marks the end of a remarkable 17-year investment that saw the company’s value soar over 20-fold. The filing indicates the investment’s value is now recorded at zero as of March 2024, a significant drop from $415 million at the end of last year.
Berkshire first invested in Shenzhen-based BYD in 2008, acquiring approximately 225 million shares for $230 million, which represented a 10% stake at that time. The company began to divest its shares in 2022 after BYD’s stock price surged, leading to massive gains for Buffett’s firm.
Despite the exit, BYD’s general manager of branding and public relations, Li Yunfei, expressed gratitude to Berkshire in a heartfelt message on his official Weibo account, thanking them for their “investment, help, and companionship over the past 17 years.” He characterized the stake sale as a “normal” stock investment trade.
The timing of this exit is particularly significant as BYD, a formidable competitor to Tesla, has recently faced challenges. The company reported its first quarterly profit decline in over three years, with domestic sales—accounting for nearly 80% of global shipments—falling for the fourth consecutive month as of August. Additionally, BYD has slashed its annual sales target by as much as 16%, now aiming for 4.6 million vehicles this year, according to reports from Reuters.
This development comes as authorities in China implement measures against aggressive pricing strategies, which have added to BYD’s challenges. As the stock market reacts, investors are keenly watching how this exit will influence both Berkshire’s portfolio and BYD’s future trajectory.
With Berkshire’s exit, the question remains: how will BYD navigate the shifting landscape of the electric vehicle market? As the situation evolves, further updates are expected. Keep following for the latest developments.
