Berkshire Hathaway sells shares in China’s BYD

Berkshire Hathaway sells shares in China’s BYD

Berkshire Hathaway, Warren Buffett's conglomerate, is selling $145 million worth of shares in China's BYD, according to a stock exchange filing. The sale reduced Berkshire's stake in BYD's total issued H-shares to 16.62 per cent on 8 November, down from 17.15 per cent, according to Friday's filing with the Hong Kong Stock Exchange. Berkshire Hathaway sold H shares worth HK$560m last week.

Earlier in 2021

Buffett has made $2bn on an investment in Chinese rival Tesla

Warren Buffett has put his faith in electric car and hybrid car maker BYD. Thanks to the growth in shares of Chinese rival Tesla, Buffett's holding company has been able to earn billions of dollars.

Warren Buffett's Berkshire Hathaway holding company earned about $2 billion from its investments in Chinese electric car and hybrid car maker BYD in 2021, Markets Insider has calculated. Late last year, Berkshire Hathaway's 8% stake in the electric car maker was valued at about $5.9 billion. Since then, BYD's share price has increased by 23%, bringing the value of the stake held by Berkshire to $7.9 billion.

During the financial crisis in 2008, the holding company spent $232 million to buy a stake in Chinese startup BYD. For that money, the company received 225 million shares in the company. In less than 13 years since the purchase of the securities, they have risen by a total of 3,400%.

Demand for BYD cars is on the rise. Sales of the Chinese maker of electric and hybrid cars in August rose by more than 300% over the same period last year to 60,500 units. BYD overtook all of its Chinese competitors (Nio, Xpeng, Li Auto) combined in August in terms of sales. After the automaker reported car sales figures on Monday, BYD's Hong Kong-listed shares rose 8 percent.

Business and Finance terms

Withholding Tax General Accepted Accounting Standards Letter Of Intent Scarcity Year-to-date Long-Term Liabilities Non-Disclosure Agreement Chief Operating Officer Return on Investment Chief Marketing Officer Chief Financial Officer Asset Protection Trust Chief Security Officer Certified Financial Planner Electronic Funds Transfer Limited Liability Company Close of Business Company Finance Cash Flow Automated Teller Machine Return on Equity stagnation Certified Management Accountant Non-Profit Organization Certified Financial Manager Chief Technology Officer Profit and Loss Profit and Loss Statement Gross Margin