“Warren Buffet’s Berkshire Hathaway Continues to Trim Stake in Chinese NEV Giant BYD, Now Holds Less Than 6%”

Warren Buffet’s Berkshire Hathaway continues to make headlines in the financial world as it further trims its stake in Chinese New Energy Vehicle (NEV) company BYD. The latest Hong Kong Stock Exchange filing reveals that Berkshire Hathaway now holds less than a 6% stake in BYD, following a reduction of 2,017,500 shares on June 19, 2024. This move resulted in a cash out of about HKD 470 million ($60.1 million) at an average price of HKD 234.57 ($30) per share.

This recent reduction comes on the heels of another stake cut earlier in the month, where Berkshire Hathaway sold 1,347,500 shares, reducing its stake from 7.02% to 6.9%. Despite these sell-offs, BYD remains optimistic about its operations, with sources indicating that the NEV maker is in good shape and poised for continued profits and growth. BYD’s position as the world’s largest NEV maker adds significance to Berkshire Hathaway’s divestment decisions.

Berkshire Hathaway’s initial investment in BYD dates back to September 2008 when it invested $230 million through Berkshire Hathaway Energy, acquiring 225 million shares at HKD 8 per share ($1). The investment was led by Berkshire Hathaway’s late Vice Chairman, Charlie Munger, who received full credit from Warren Buffet for the successful BYD investment. Over the years, Berkshire Hathaway has gradually reduced its stake in BYD, with previous filings indicating a reduction from 20.04% to 19.92% in August 2022.

The recent sell-offs by Berkshire Hathaway raise questions about the firm’s long-term strategy regarding its investment in BYD. As BYD continues to assert its position in the NEV market, investors and industry analysts will be closely monitoring Berkshire Hathaway’s future moves in relation to the Chinese company. The evolving dynamics between these two prominent entities in the financial world add an intriguing layer to the ongoing narrative of investment decisions and market trends.

For more updates and insights on this developing story and other financial news, stay tuned for further coverage.