BYD sees Warren Buffett Exit as a routine, investors respond carefully

Berkshire Hathaway from Warren Buffett has fully sold his 17-year interest in the Chinese electric vehicle maker BYD, with which one of the most profitable foreign bets in the history of conglomerate ends. The relocation, which comes after BYD shares rose nearly 3,900% during the Berkshire holding period, rattled investors, even when the Chinese automaker framed the rejection as a routine.

BYD recognized the departure of Berkshire in a Weibo post this week, thanked Warren Buffett and Charlie Munger for their support for almost two decades. Li Yunfei, director of Byd’s Public Relations, wrote, as translated by Google:

“In August 2022, Berkshire gradually began to reduce his possession of company shares that were purchased in 2008, and by last June the importance of 5%dropped … Investing in shares included both buying and sales, which is completely normal … We are grateful for the recognition of Charlie Munger and Warren Buffett’s recognition of BYD, and the BYDD, and the BYDD, and the BYDD, and the BYDD, and the BYDD, and the BYDD, and the BYDD, and the Long-term Loves!

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

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

Market still nervous?

However, investors were less optimistic. BYD shares fell by more than 6% in Hong Kong this week, although they remain slightly less than 20% for the year. The decline coincides with signs of delay growth: BYD has recently reduced its 2025 point of view by 16%, reduced vehicle prices until the end of the year, production delayed and his first quarterly profit fell in more than three years. Berkshire first bought 225 million BYD shares in 2008 for $ 230 million, an interest that originally defended by the Late Charlie Munger and almost $ 9 billion on the peak. During the annual meeting of 2009, Munger defended the investment and called BYD and his founder Wang Chuanfu a ‘damn miracle’. The bet turned out to be ahead, with BYD shares that rise around 3,890% over the Berkshire cure period. Berkshire began to reduce his interest in August 2022 and had sold almost 76% in June 2024, leaving less than 5% of the outstanding shares behind. By March 31, 2025, the registrations indicated that the importance was completely liquidated. Buffett has described BYD as ‘extraordinary’, but said that he saw better use for the capital elsewhere, which reflects similar movements in Taiwan Semiconductor, where geopolitical risks were incorporated into his decision -making.

Now focus on Japan?

While he is taking out his Chinese investment, Berkshire is expanding in Japan. Mitsui this week confirmed that Berkshire now owns 10% or more of his voting rights after additional acquisitions. Mitsubishi also reported an increase in the importance of Berkshire to 10.2% compared to 9.7%. At the current prices, Berkshire’s Mitsui -Stuck would only be appreciated at around $ 7.3 billion.

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