Berkshire Hathaway has sold 1.3 million shares of the Hong Kong-listed electric vehicle manufacturer BYD, with the transaction amounting to HKD 310.5 million (USD 39.8 million), according to an exchange filing on Monday.
The document submitted to the Hong Kong Stock Exchange shows that the transaction occurred on June 11, reducing Berkshire's stake in BYD's H shares from 7.02% to 6.90%.
Founded by renowned investor Warren Buffett, Berkshire Hathaway is well-known for its astute investment strategies. In 2008, Berkshire Hathaway made its initial investment in BYD, acquiring approximately 10% of the company’s shares. This move was widely regarded as one of Buffett's foresighted investments in the new energy and electric vehicle sectors. Since then, BYD has rapidly risen as a leading electric vehicle manufacturer, becoming a significant player in the global new energy vehicle market.
Over the ensuing years, Berkshire Hathaway continued to hold BYD's shares, increasing its investment at several key moments. In 2010, BYD successfully went public in Hong Kong, with its stocks performing strongly, further validating Buffett's investment decision. As global demand for new energy and eco-friendly technologies grows, BYD's market share and brand influence have steadily increased.
In 2022, Berkshire Hathaway began gradually reducing its stake in BYD. On June 11, Berkshire Hathaway sold 1.3 million BYD shares listed in Hong Kong, for HKD 310.5 million (around USD 39.8 million). This sale reduced Berkshire Hathaway's stake in BYD's H shares from 7.02% to 6.90%. Nevertheless, Berkshire Hathaway remains one of BYD’s significant shareholders.
This reduction has garnered widespread market attention and discussion. Some analysts believe it might be part of Berkshire Hathaway's portfolio reallocation to optimize asset distribution. Others suggest it could be a rational exit following the full realization of BYD's stock value.
