#WarrenBuffett #BerkshireHathaway #ElectricVehicles
Warren Buffett's Berkshire Hathaway has trimmed its stake in Chinese electric vehicle (EV) manufacturer BYD to 6.9%. This adjustment follows the sale of an additional 1.3 million Hong Kong-listed shares, valued at $39.8 million. Berkshire's initial investment in BYD dates back to 2008, when it acquired approximately 225 million shares for around $230 million. This strategic bet, driven in part by the late Charlie Munger, proved highly profitable as the EV market experienced exponential growth in China and beyond.
BYD, established by Wang Chuanfu, began producing batteries for mobile phones in the 1990s before transitioning to automobiles by 2003. The company has since emerged as the top car brand in China and a significant producer of EV batteries. In the final quarter of 2023, BYD surpassed Tesla as the world's leading EV manufacturer, selling more battery-powered vehicles than its U.S. counterpart.
Buffett acknowledged Munger's role in the successful investment, stating in 2010, "Charlie Munger deserves 100 percent of the credit for BYD." Munger's interest in BYD was sparked by his friend Li Lu, the founder of Seattle-based asset manager Himalaya Capital.
Hong Kong's regulatory requirements mandate a filing when a stake percentage reaches a whole number. Should Berkshire's stake fall below 6%, another filing will be necessary.
Original Article: https://www.cnbc.com/2024/06/17/warren-buffetts-berkshire-hathaway-trims-its-stake-in-chinese-ev-maker-byd-to-6point9percent.html
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