BYD confirmed on Monday that Warren Buffett’s Berkshire Hathaway has exited its position in the Chinese giant.
Berkshire Hathaway Energy — the subsidiary that owned the shares — reported that held zero shares of BYD as of the end of March.
The company’s initial investment in BYD, made 17 years ago, was prompted by Charlie Munger — the company’s former Vice President, who passed away in late 2023.
The firm purchased around 225 million shares in the Chinese giant. The value of the shares soared roughly 3890% since 2008.
In August 2022, the firm began reducing its holdings in the Chinese automaker. No official explanation was provided for the sales.
Warren Buffett later told CNBC in 2023 that, “I think that we’ll find things to do with the money that I’ll feel better about.”
Data from local media outlet Yicai shows Berkshire sold BYD shares in at least 16 separate transactions, generating more than HK$8.1 billion (about $1 billion).
By June 2024, the company had sold nearly 76% of its stake, leaving it with 54 million shares.
Since its holdings had fallen below 5% of BYD‘s outstanding shares, Berkshire was no longer required under Hong Kong exchange rules to disclose subsequent sales.
On Monday, BYD‘s Head of PR Li Yunfei stated on Weibo that “for stock investment, it is very normal to buy and sell,” thanking both Munger and Buffett “for recognizing BYD.”
“Also, thank you for the investment, help and company in the past 17 years,” the Shenzhen-based automaker added.
BYD shares listed in Hong Kong are trading 3.8% below at HK$109.70 ($14.11).
Earlier this month, Reuters reported that BYD has reportedly cut its annual sales target by 16.4% from 5.5 million to 4.6 million vehicles, as production declined for a second straight month in August.
The company recently reported its second quarter earnings results, posting a profit loss for the first time in over three years.
Net profit totalled 6.4 billion yuan (nearly $900 million), down 29.9% from a year earlier, after doubling in the first quarter.
On the other hand, revenue rose by 14% to 200.9 billion yuan (about $28.2 million).
