According to Bloomberg, Berkshire Hathaway Inc.
, the investment company owned by Warren Buffett, the “stock god” After selling another batch of BYD shares, its shareholding in BYD dropped from more than 20% two years ago to less than 5%, resulting in BYD’s share price falling the most in more than three weeks.
BYD Yuan UP.
Photo source: BYD, according to documents filed with the Hong Kong Stock Exchange on July 22, Berkshire Hathaway currently holds 4.
94% of BYD’s shares, down from the previous 5.06%. Falling its shareholding below 5% means that Berkshire Hathaway no longer has to disclose any further sales and whether it will withdraw its shareholding completely.
, Previously, Buffett received a 2,000% return on his early investment in BYD.
Over the past 20 years, BYD has grown from a little-known mobile phone battery supplier to one of the world’s largest manufacturers of electric and hybrid vehicles.
Currently, BYD’s market value reaches US$100 billion, making it the third-highest automaker in the world by market value, after Tesla and Toyota Motors.
Other early investors in BYD have also benefited.
Himalaya Capital once held 75 million BYD shares, with a shareholding ratio of approximately 8.
2%, but its shareholding in 2021 has dropped below 5%.
It was Li Lu, chairman of Himalayan Capital Management, who recommended BYD to Charlie Munger, late Berkshire vice chairman.
Subsequently, Berkshire spent US$232 million in 2008 to purchase 225 million shares of BYD’s Hong Kong-listed shares.
BYD’s market leadership is partly due to its vertically integrated supply chain, where the company is able to produce its own batteries and semiconductors, and even has its own ships to transport export cars to reduce costs.
BYD also benefits from its attractive and well-designed automotive product line at all price points.
Although Berkshire reduced its stake in BYD, BYD has grown stronger, with sales of electric and hybrid vehicles setting new records in the second quarter, selling nearly 1 million vehicles.
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