Berkshire Hathaway, the renowned investment conglomerate led by Warren Buffett, has divested a portion of its holdings in the Chinese electric vehicle manufacturer BYD. According to a filing on Monday with the Hong Kong stock exchange, the investment giant sold 1.3 million Hong Kong-listed shares of BYD for HK$310.5 million (equivalent to $39.8 million).
The sale took place on June 11, 2024, and resulted in a marginal reduction of Berkshire Hathaway’s stake in BYD’s issued H-shares. Prior to this transaction, Berkshire held 7.02% of BYD’s issued H-shares. Post-sale, this figure has slightly decreased to 6.90%, as indicated in the regulatory filing.
Berkshire Hathaway’s reduction of its stake in BYD comes at a time when the electric vehicle market is experiencing significant volatility and growth. BYD, one of the largest electric vehicle manufacturers in China, has been a key player in this sector, with a diverse portfolio that includes electric cars, buses, and rechargeable batteries. The company’s performance has been closely watched by investors worldwide, given the increasing shift towards green energy and sustainable transportation solutions.
While the sale represents a small portion of Berkshire Hathaway’s overall investment in BYD, it may reflect broader strategic considerations. Warren Buffett’s investment decisions are often scrutinized for insights into market trends and economic outlooks. The slight reduction in holdings could indicate a reevaluation of the investment’s risk-return profile or simply a rebalancing of Berkshire Hathaway’s extensive investment portfolio.
Berkshire Hathaway has been an investor in BYD for over a decade, initially purchasing a significant stake in the company in 2008. This long-term investment has proven highly profitable, as BYD has grown substantially, capitalizing on the global shift towards electric vehicles and renewable energy.
Despite this recent sale, Berkshire Hathaway remains a significant stakeholder in BYD. The investment firm continues to hold a substantial portion of BYD’s H-shares, reflecting ongoing confidence in the company’s long-term prospects. As the electric vehicle industry continues to evolve, Berkshire Hathaway’s remaining investment in BYD positions it to benefit from future growth in the sector.
