BYD’s stock falls after report Buffett has sold all his stake

BYD shares tumble

Shares of BYD Co. slid in Hong Kong on Monday as a report stating that Warren Buffett’s investment firm has sold all its stake in the Chinese electric-vehicle maker soured investor sentiment.

The stock fell as much as 3.6%, the most in three weeks, to be among the worst performers on a gauge of Chinese shares listed in Hong Kong. Berkshire Hathaway Inc. has exited its entire holding in BYD, according to a CNBC report on Sunday that also cited a spokesperson for the US firm confirming the development.

A filing by Berkshire Hathaway Energy, the subsidiary that held BYD’s shares, listed the value of the investment as zero as of March 31, CNBC reported. Buffett’s firm held the stock for more than 15 years, having first bought 225 million shares in September 2008. The stock surged more than 4,500% since the day before the first purchase to March 31 this year.

Value of Berkshire's BYD Investment

The past two decades have seen BYD go from a little-known Chinese battery provider for cell phones to the nation’s biggest electric and hybrid vehicle maker. Berkshire began offloading its stake in mid-2022, with the holding dropping below 5% last year. A breach of that threshold meant the US firm was no longer obligated by the Hong Kong Stock Exchange to disclose future sales.

BYD’s shares have tumbled about 30% from the all-time high reached four months ago due to growing concerns over its ability to fend off competition amid a destructive price war in China.

Berkshire started investing in BYD after Buffett’s long-term business partner Charlie Munger — who bought the stock with Himalaya Capital’s Chairman Li Lu — recommended the investment.

“In stock investing, buying and selling are normal practices,” Li Yunfei, a general manager for branding and public relations at BYD, said in a Chinese social media Weibo post on Monday. “We’re grateful to Munger and Buffett for their recognition of BYD, and for their 17 years of investment, support, and companionship.”

A spokesperson for BYD referred Bloomberg to Li’s Weibo post when asked for comment. Berkshire did not immediately respond to an email sent outside of regular working hours.