Berkshire Hathaway completely sells BYD stake after gains

In Short:
– Berkshire Hathaway sold its entire stake in BYD, concluding a 17-year investment with 4,000% returns.
– BYD faces challenges, lowering its sales target after a 30% decline in net profit for the second quarter.

Warren Buffett’s Berkshire Hathaway has sold its entire stake in the Chinese electric vehicle manufacturer BYD, concluding a 17-year investment that yielded around 4,000% returns.

A filing from Berkshire Hathaway Energy indicated that the investment’s value fell to zero as of March 31, 2025, from a peak of $415 million at the end of 2024.

The original investment, supported by the late Vice Chairman Charlie Munger, involved the purchase of 225 million BYD shares in 2008.

Munger previously praised BYD and its founder, stating that the company’s growth from a startup to a leading battery and automotive manufacturer was remarkable.

Market Reaction

BYD is currently facing domestic market challenges, reporting a 30% decline in net profit for the second quarter, attributed to an intense price war in the EV sector.

Its annual sales target has been lowered by 16% to 4.6 million vehicles. Following the news of Berkshire’s exit, BYD’s shares fell by 3.4% in Hong Kong.