Warren Buffett, Berkshire Hathaway reduces stake in electric car maker BYD to 6.9% | Wilnesh News

Early investor in Berkshire Hathaway BYD Thanks to the late Charlie Munger for continuing to pare his massive stake in China’s largest electric car maker.

Warren Buffett’s conglomerate reportedly sold an additional 1.3 million shares of Hong Kong-listed BYD for $39.8 million. Filing with the Hong Kong Stock Exchange. The sale reduced Berkshire’s stake from 7% to 6.9%.

this conglomerate In 2008, BYD first purchased approximately 225 million Shenzhen BYD shares for approximately US$230 million. The bet has proven highly profitable as the market for electric vehicles explodes in China and elsewhere.

Since the beginning of 2008, BYD’s stock price has soared nearly 600% and hit a record high in April 2022. Berkshire Hathaway has sold half of its shares through sales in 2022 and 2023.

Hong Kong regulations only require filing when the shareholding ratio exceeds an integer, so if Berkshire’s shareholding ratio is less than 6%, it will be filed again.

Munger’s influence

BYD, founded by Wang Chuanfu, began producing mobile phone batteries as early as the 1990s. In 2003, the company turned to the automotive field, becoming China’s top car brand and a major producer of electric vehicle batteries.

BYD overtook Tesla as the world’s largest electric vehicle maker in the fourth quarter of 2023, outselling its U.S. rivals.

Buffett said in 2010 that the late Berkshire Vice Chairman Munger “had 100% credit for BYD.” Munger was introduced to BYD through his friend Li Lu, founder of Seattle-based asset management company Himalaya Capital.