Buffett's Berkshire Hathaway Exits Profitable BYD Stake

Berkshire Hathaway's initial investment in BYD was made at the recommendation of Charlie Munger, who lauded the company and its CEO, Wang Chuanfu, as a "damn miracle." Over the years, BYD has grown into a dominant player in the EV market, even surpassing Tesla in global sales in 2024. However, despite this growth, BYD faces challenges, including intense competition and pressure on pricing within China's EV sector. Buffett indicated in 2023 that he would find other opportunities for the capital. Berkshire also sold almost all of the company's Taiwan Semiconductor stake, roughly $4 billion of stock, just months after the shares were purchased as he "reevaluated" the geopolitical risk posed by Beijing’s claim that Taiwan is part of China. Wang Chuanfu, BYD's chairman and CEO, is now China's 11th richest person, with a net worth of $24.4 billion.

Warren Buffett has not given explicit reasons, but he hinted at finding better investment opportunities. Geopolitical risks may have also influenced the decision.

BYD shares increased by roughly 3890% during the years Berkshire owned them.

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