(USA, 22nd) According to reports from American media, Berkshire Hathaway, the conglomerate chaired by Warren Buffett, has completely exited its investment in BYD.
CNBC reported that Berkshire Hathaway initially invested $230 million (969 million MYR) in 2008 to purchase 225 million shares of BYD. The company began to reduce its holdings in August 2022, after the position's market value surged by 41% in the second quarter of that year, reaching $9 billion.
By last June, Berkshire had sold about 76% of its shares, bringing its stake down to less than 5% of BYD's publicly traded shares. According to the rules of the Hong Kong Stock Exchange, transactions that lower a holding below this threshold no longer require further disclosure. At that time, the market generally believed Berkshire still held about 54 million shares.
However, the Q1 financial report of Berkshire Hathaway Energy (BHE) already listed this investment as zero. A Berkshire spokesperson later confirmed that the company has indeed liquidated all of its BYD holdings.
According to BHE's financial report, the selling continued after the stake fell below 5% last year. Berkshire's purchase of BYD back then was at the strong urging of Charlie Munger. At the 2009 shareholders meeting, Munger called BYD and its founder Wang Chuanfu "an amazing miracle." During Berkshire's holding period, BYD's stock price increased by around 3,890%.
In response to Buffett's liquidation, BYD Group's General Manager of Public Relations, Li Yunfei, posted on Weibo on Monday (September 22) stating that stock investment always involves buying and selling, and this is very normal. "We thank Munger and Buffett for their recognition of BYD, as well as their investment, help, and companionship over the past 17 years. Kudos to everyone committed to long-termism."
CNBC reported that Berkshire Hathaway initially invested $230 million (969 million MYR) in 2008 to purchase 225 million shares of BYD. The company began to reduce its holdings in August 2022, after the position's market value surged by 41% in the second quarter of that year, reaching $9 billion.
By last June, Berkshire had sold about 76% of its shares, bringing its stake down to less than 5% of BYD's publicly traded shares. According to the rules of the Hong Kong Stock Exchange, transactions that lower a holding below this threshold no longer require further disclosure. At that time, the market generally believed Berkshire still held about 54 million shares.
However, the Q1 financial report of Berkshire Hathaway Energy (BHE) already listed this investment as zero. A Berkshire spokesperson later confirmed that the company has indeed liquidated all of its BYD holdings.
According to BHE's financial report, the selling continued after the stake fell below 5% last year. Berkshire's purchase of BYD back then was at the strong urging of Charlie Munger. At the 2009 shareholders meeting, Munger called BYD and its founder Wang Chuanfu "an amazing miracle." During Berkshire's holding period, BYD's stock price increased by around 3,890%.
In response to Buffett's liquidation, BYD Group's General Manager of Public Relations, Li Yunfei, posted on Weibo on Monday (September 22) stating that stock investment always involves buying and selling, and this is very normal. "We thank Munger and Buffett for their recognition of BYD, as well as their investment, help, and companionship over the past 17 years. Kudos to everyone committed to long-termism."