Famed investor Warren Buffett has sold his entire stake in Chinese electric vehicle maker BYD (BYDDF).
Through his holding company Berkshire Hathaway (BRK.A/BRK.B), Buffett held 225 million shares of BYD stock, a position he purchased in 2008 for $230 million U.S.
However, by June 2024, Berkshire Hathaway had sold 76% of its stake in BYD, bringing it to 54 million shares or just under 5% of the Chinese automaker’s outstanding stock.
A spokesperson for Buffett has confirmed to CNBC that the entire BYD position has now been sold.
BYD turned out to be an incredible investment for Buffett, with the shares price rising 3,890% during the years Berkshire owned them.
Apparently, Berkshire Hathaway made its initial investment in BYD 17 years ago at the urging of Buffett’s longtime partner Charlie Munger.
Munger was apparently a fan of BYD’s Chief Executive Officer (CEO) Wang Chuanfu, calling him a “damn miracle.”
Buffett has not commented publicly on why he sold the BYD position, but in 2023 he told CNBC that although he feels BYD is an “extraordinary company,” he thinks “we’ll find things to do with the money that I’ll feel better about.”
Buffett has shied away from making investments outside the U.S. that he feels could expose Berkshire Hathaway to geopolitical risks or upheaval, saying on several occasions that “It’s a dangerous world.”
BYD has emerged as one of China’s leading electric vehicle makers and has been aggressively expanding to Europe.
BYDDF stock is up 31% this year and has risen 228% over the past five years.
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