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News Topical, Digital Desk : Berkshire Hathaway has sold its entire stake in Chinese electric vehicle company BYD. Significantly, this sale of BYD has generated significant profits for Berkshire Hathaway. However, BYD shares fell by 3% on Monday. Berkshire Hathaway had purchased 225 million shares of BYD in 2008 for $230 million.
The company began reducing its stake in August 2022, after its value increased 41% to $9 billion in the second quarter. By June of last year, Berkshire Hathaway had sold 76% of its stake. Subsequently, its stake in BYD fell below 5%.
How did it become known that the company had sold its entire stake?
According to Hong Kong Exchange rules, sales are not required to be disclosed if the stake is less than 5%. At that time, Berkshire Hathaway was believed to have 54 million shares remaining. However, Berkshire Hathaway Energy's (BHE) quarterly financial results showed the investment's value as zero as of March 31. BHE held all of these shares. However, a Berkshire Hathaway spokesperson confirmed that the entire BYD stake had been sold. Berkshire Hathaway invested in BYD 17 years ago on the advice of Charlie Munger
At the 2009 annual meeting, Manger told shareholders that the investment might seem "crazy," but BYD and its CEO, Wang Chuanfu, were "a miracle." The investment was spectacular. During Berkshire Hathaway's ownership, BYD shares grew by approximately 3,890%.
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