BYD Co (比亞迪) shares dropped the most in three weeks after a report that Warren Buffett’s investment firm offloaded its stake in the Chinese electric-vehicle (EV) maker.
The stock fell 3.4 percent, ranking among the worst performers on a gauge of Chinese shares listed in Hong Kong. Berkshire Hathaway Inc has exited its entire holding in BYD, CNBC reported on Sunday, with a spokesperson for the US firm also confirming the development.
A filing by Berkshire Hathaway Energy Co, the subsidiary that held BYD’s shares, listed the value of the investment as zero as of March 31, CNBC reported.
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Buffett’s firm held the stock for more than 15 years, having first bought 225 million shares in September 2008. The stock surged more than 4,500 percent since the day before the first purchase to March 31 this year.
The past two decades have seen BYD go from a little-known Chinese battery provider for cell phones to the nation’s biggest electric and hybrid vehicle maker. Berkshire began offloading its stake in mid-2022, with the holding dropping below 5 percent last year.
BYD’s shares have tumbled about 30 percent from the all-time high reached four months ago due to growing concerns over its ability to fend off competition amid a destructive price war in China.
Berkshire started investing in BYD after Buffett’s long-term business partner, Charlie Munger, recommended the investment.
“In stock investing, buying and selling are normal practices,” Li Yunfei (李雲飛), a general manager for branding and public relations at BYD, wrote on Sina Weibo yesterday. “We’re grateful to Munger and Buffett for their recognition of BYD, and for their 17 years of investment, support, and companionship.”
In contrast, Berkshire has become a major shareholder of Mitsui & Co after raising its stake, the latest bet that Japan’s trading houses would remain attractive.
The US investor increased its holdings in Mitsui to more than 10 percent on a voting-rights basis, and might consider expanding its stake even further, a statement from the Japanese company said yesterday.
Mitsui’s stock extended its morning gains to rise as much as 2.2 percent after the announcement. Fellow trading houses Mitsubishi Corp, Itochu Corp, Marubeni Corp and Sumitomo Corp were also up in Tokyo yesterday.
Buffett first revealed stakes in Japan’s top five trading houses, also known as sogo shosha, in 2020. Shares of the companies — which are involved in a wide range of businesses from liquefied natural gas to salmon farming — have benefited from the endorsement.
Berkshire originally planned to keep its stakes below 10 percent, but the Japanese firms agreed to “moderately” relax the ceiling, Buffett’s annual investor letter in February said.
Berkshire has also raised its stake in Mitsubishi above the 10 percent threshold.
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