Warren Buffett’s Berkshire Hathaway trims its stake in Chinese EV maker BYD to 6.9% (2024)

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Warren Buffett speaks during the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska, on May 4, 2024.

CNBC

Berkshire Hathaway, an early investor in BYD thanks to the late Charlie Munger, continued to trim its massive stake in China's biggest electric vehicle maker.

Warren Buffett's conglomerate has sold an additional 1.3 million Hong Kong-listed shares of BYD for $39.8 million, according to a filing to the Hong Kong Stock Exchange. The sale reduced Berkshire's holding to 6.9%, from 7%.

The conglomerate first bought about 225 million shares of Shenzhen-based BYD in 2008 for about $230 million. The bet turned out to be extremely lucrative as the EV market saw explosive growth in China and elsewhere.

Berkshire had offloaded half its holding through sales in 2022 and 2023 after BYD skyrocketed nearly 600% to a record high in April 2022 from the start of 2008.

Hong Kong's rules only require a filing when a stake percentage crosses a whole number, so if Berkshire's stake falls below 6%, there will be another filing.

Munger's influence

Founded by Wang Chuanfu, BYD started making batteries for mobile phones back in the 1990s. By 2003, the company had pivoted to autos and has since become the top car brand in China, as well as a major producer of EV batteries.

In the fourth quarter of 2023,BYD dethroned Tesla as the world's top EV maker, selling more battery-powered vehicles than its U.S. rival.

Buffett said in 2010 that Munger, the late vice chairman of Berkshire, "deserves 100 percent of the credit for BYD." Munger was introduced to BYD by his friend Li Lu, founder of Seattle-based asset manager Himalaya Capital.

Warren Buffett’s Berkshire Hathaway trims its stake in Chinese EV maker BYD to 6.9% (2024)

FAQs

How much stake does Warren Buffett have in BYD? ›

On July 16, Berkshire Hathaway trimmed its stake in BYD to 4.94%, down from 5.06%, according to a Monday filing on the Hong Kong stock exchange.

Did Berkshire Hathaway sell $39.8 mln of shares in China's BYD? ›

Berkshire recently sold 1.3 million Hong Kong-listed BYD shares for HK$310.5 million ($39.8 million), according to a filing on Monday with the Hong Kong stock exchange. That reduced its stake in BYD's issued H-shares to 6.90% from 7.02%.

What EV stock does Warren Buffett own? ›

And of course, let's not forget Warren Buffett's stake in the company. Despite Berkshire Hathaway (BRK.B) trimming its BYDDY holdings in recent quarters as it builds a massive cash hoard, the Buffett-run conglomerate still holds a 4.9% stake in BYDDY via its equity portfolio, per mid-July data.

Why is BYD stock dropping? ›

BYD overtook Tesla, the U.S. EV maker run by billionaire Elon Musk, in battery-EV sales in the fourth quarter of 2023. Since that feat, the stock is down. Recent price cutting, elevated inventories, and the disappointing fourth-quarter profit outlook all underscore how tough competition is getting among EV makers.

Is BYD stock worth buying? ›

BYD (BYDDF)'s analyst rating consensus is a Strong Buy. This is based on the ratings of 10 Wall Streets Analysts.

Can Americans invest in BYD? ›

Even though BYD's car manufacturing takes place in mainland China, its largest sales market, it is a publicly traded entity with a growing U.S. footprint. Some 60% of its stocks are held by U.S. investors, including an almost 10% share once owned by Warren Buffett's Berkshire Hathaway group.

Why did Warren Buffett sell BYD? ›

Buffett's holdings in the carmaker are down more than 70% amid increasing technology and trade tensions between the United States and China. Investment mogul Warren Buffett has quickened the reduction of his stake in Chinese electric vehicle-maker BYD, selling holdings in the firm twice this month.

Who is the largest shareholder of BYD? ›

Holdings: BYD Company Limited
NameEquities%
CHENGXIN LITHIUM GROUP CO., LTD. 75.18%46,630,91775.18%
HOLITECH TECHNOLOGY CO., LTD. 11.13%346,360,99411.13%
HOLITECH TECHNOLOGY CO., LTD. 0.25%8,094,2560.25%
HOLITECH TECHNOLOGY CO., LTD. 0.84%5,135,9080.84%
3 more rows

Who is the largest investor in BYD? ›

BYD, a global leader in electric vehicles and renewable energy, has Xiang Yang Lu as its top Class A shareholder, with an impressive ownership stake of 18.37%. Holding 213,984,857 equities, Xiang Yang Lu's investment has cemented his position as the leading shareholder of BYD.

Who is the richest EV company in the world? ›

Top 10 largest companies by market capitalization
#CompanyMarket capitalization
1Apple$3.381 trillion
2Microsoft$3.035 trillion
3NVIDIA$2.629 trillion
4Alphabet (Google)$1.943 trillion
6 more rows

What is the #1 EV stock? ›

Tesla Inc.

Did buffet invest in Tesla? ›

Buffett hasn't invested in Tesla, but he holds Musk in high regard. He called him “a brilliant, brilliant guy” at Berkshire's annual shareholders meeting in 2023. Buffett also noted, “We don't want to compete with Elon in a lot of things.” Buffett's late right-hand man, Charlie Munger, concurred.

Is Tesla losing to BYD? ›

Tesla posts 2024 high in China car sales last month, but is still losing share to rivals like BYD.

Is Tesla bigger than BYD? ›

Tesla vs BYD

In the last few months of 2023, BYD overtook Tesla to become the world's largest electric vehicle manufacturer with more electric vehicle sales in multiple locations.

Why is BYD not in USA? ›

BYD EVs aren't being sold in the U.S. now largely because of 27.5% tariffs on the sale price of Chinese vehicles when they arrive at ports. Donald Trump slapped on the bulk of the tariff, 25%, when he was president, and it was kept in place under Joe Biden.

Who is BYD owned by? ›

Who owns BYD Limited? As of December 2022, BYD Limited was primarily owned by its founders, Mr. Wang Chuanfu and Lv Xiangyang, and Berkshire Hathaway, the conglomerate run by Warren Buffet, one of the world's best known and wealthiest investors.

Why is Buffett selling BYD stock? ›

Buffett's company has been unloading stock since 2022. More than a dozen sales have taken its stake down by roughly two-thirds from the peak of about 225 million. Berkshire might be taking profits or its management might be worried about slowing EV sales growth or more EV competition. Investors just can't be sure.

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