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BYD Shrugs Off Berkshire Hathaway’s Exit — What Investors Need to Know
BYD confirmed that Berkshire Hathaway has fully sold its remaining shares earlier this year, ending a 17-year investment that began in 2008. The exit was framed as routine trading rather than a negative judgment on the company.
BYD’s Response
On Weibo, PR executive Li Yunfei stated:
“Investing in stocks involves both buying and selling, which is completely normal. We are grateful for Charlie Munger’s and Warren Buffett’s recognition of BYD, as well as for the investment, support, and companionship over the past 17 years.”
Executive Vice President Stella Li added in a CNBC Europe interview:
“Warren and Charlie loved BYD and its management, but they are investors, so naturally buying and selling is their business. It’s not because they don’t like us.”
The company emphasized long-term confidence despite the conclusion of Berkshire’s investment cycle.
Market Reaction and BYD Performance
After the announcement, BYD shares dropped more than 6%. Despite this, the stock remains up nearly 20% since January, indicating that investors still value its growth.
Other pressures on BYD include:
A 16% cut in its 2025 sales target
Price reductions through the end of the year
Slowed production lines
First quarterly profit decline in more than three years
These factors suggest the company is moderating its rapid expansion, which contributed to market concerns.
Berkshire’s Shift Toward Japan
While exiting BYD, Berkshire increased its stakes in Japanese trading houses:
Mitsui: over 10% voting rights
Mitsubishi: 10.2% stake
Other holdings in Itochu, Marubeni, and Sumitomo may also have exceeded 10%, reflecting Berkshire’s strategic focus on Japan.
Investor Takeaway
Berkshire Hathaway’s sale was routine profit-taking, not a negative signal about BYD. Investors should monitor:
BYD’s operational performance
Upcoming sales and production targets
Broader EV market trends
Conclusion:
Berkshire Hathaway’s exit ends a long-term investment, but BYD continues to navigate growth and market pressures. Long-term investors may focus on operational execution and EV market positioning rather than the headline exit.
⚠️ Disclaimer
This article is for informational purposes only and does not constitute financial advice. Always conduct your own research or consult with a professional financial advisor before making investment decisions.