BYD sees Warren Buffett exit as routine, investors react with caution

Warren Buffett’s Berkshire Hathaway has fully sold its 17-year stake in Chinese electric-vehicle maker BYD, ending one of the most profitable foreign bets in the conglomerate’s history. The move, which comes after BYD shares surged nearly 3,900% during Berkshire’s holding period, has rattled investors, even as the Chinese automaker framed the divestment as routine.

BYD acknowledged Berkshire’s departure in a Weibo post this week, thanking Warren Buffett and Charlie Munger for their support over nearly two decades. Li Yunfei, BYD’s public relations executive, wrote, as translated by Google:

“In August 2022, Berkshire began gradually reducing its holdings of company shares purchased in 2008, and by last June, its stake had fallen below 5%…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…Praise to all long-term believers!”

BYD Executive Vice President Stella Li told CNBC that Berkshire’s decision was business as usual and Buffett and Munger “loved” BYD and its management. “They are investors, so naturally buying and selling is their business, so it’s not because they don’t like us.”

Alfredo Altavilla, a special adviser to BYD, told Reuters that Buffett “made a profit of 20 times the capital he invested” and emphasized that monetizing a position “is exactly what Berkshire Hathaway does for a living: buying, earning and selling.”

Market still nervous?

Investors, however, were less sanguine. BYD shares fell more than 6% in Hong Kong this week, though they remain up just under 20% for the year. The decline coincides with signs of slowing growth: BYD recently cut its 2025 sales target by 16%, lowered vehicle prices through year-end, slowed production, and posted its first quarterly profit drop in over three years.Berkshire first purchased 225 million BYD shares in 2008 for $230 million, a stake originally championed by the late Charlie Munger and worth nearly $9 billion at its peak. At the 2009 annual meeting, Munger defended the investment, calling BYD and its founder Wang Chuanfu a “damn miracle.” The bet proved prescient, with BYD shares soaring roughly 3,890% over Berkshire’s holding period.Berkshire began trimming its stake in August 2022 and had sold nearly 76% by June 2024, leaving under 5% of shares outstanding. By March 31, 2025, filings indicated the stake had been fully liquidated. Buffett has described BYD as “extraordinary” but said he saw better uses for the capital elsewhere, echoing similar moves in Taiwan Semiconductor, where geopolitical risks factored into his decision-making.

Focus now on Japan?

While closing out its Chinese investment, Berkshire is expanding in Japan. Mitsui confirmed this week that Berkshire now holds 10% or more of its voting rights following additional acquisitions. Mitsubishi also reported an increase in Berkshire’s stake to 10.2% from 9.7%. At current prices, Berkshire’s Mitsui holding alone would be valued at roughly $7.3 billion.

Also read | Warren Buffett’s Berkshire cashes out Munger’s blockbuster China EV bet after 17-year run (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)