A Hong Kong Stock Exchange filing has revealed that legendary investor Warren Buffet’s Berkshire Hathaway has trimmed its stake in Chinese New Energy Vehicle (NEV) company BYD even further. With the latest reduction, Berkshire Hathaway now holds less than a 6% stake in BYD.
As per a report from CNEV Post, Berkshire Hathaway reduced its BYD stake by 2,017,500 shares on June 19, 2024, at an average price of HKD 234.57 ($30) per share, for a total cash out of about HKD 470 million ($60.1 million). This effectively cut the firm’s stake in the NEV maker to just 5.99%.
Interestingly enough, this is not the first time that Berkshire Hathaway reduced its BYD stake this month. On June 11, just over a week before the firm’s most recent filing, Berkshire cut its stake in BYD by 1,347,500 shares. This reduced Berkshire Hathaway’s BYD stake from 7.02% to 6.9%. At the time, BYD shares were trading at HKD 230.46 per share, so Berkshire was able to cash out HKD 310 million ($39.6 million).
BYD, for its part, seems to be maintaining an optimistic stance about its operations. When asked about Berkshire Hathaway’s selloff on June 11, sources from BYD reportedly noted that the NEV maker was in good shape. The sources also reportedly noted that BYD is poised to maintain its profits and growth. This is a pretty notable stance considering that BYD has become the world’s largest NEV maker.
Berkshire Hathaway, through Berkshire Hathaway Energy, invested $230 million in BYD in September 2008. This allowed the firm to acquire 225 million shares of BYD at HKD 8 per share ($1). As noted in a Reuters report, Berkshire Hathaway’s late Vice Chairman, Charlie Munger, led the firm’s investment in BYD. Warren Buffett has given Munger full credit for Berkshire Hathaway’s BYD investment.
Berkshire Hathaway held its shares in BYD until August 2022, when filings revealed that the firm had sold 1.33 million BYD shares, reducing its stake in the NEV maker from 20.04% to 19.92%. At the time, BYD stock had increased more than 20-fold.
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