Berkshire Hathaway Fully Exits BYD After 16-Year Investment

Berkshire Hathaway has officially exited its investment in Chinese electric vehicle giant BYD, bringing an end to a 16-year relationship. According to CNBC, Berkshire Hathaway Energy’s first-quarter report showed its BYD holdings had a value of zero as of March 31, and the company later confirmed the divestment. Berkshire first bought into BYD in 2008 at the urging of Charlie Munger, spending $230 million for a 10% stake, or 225 million shares. Warren Buffett himself once praised founder Wang Chuanfu, even visiting BYD’s facilities in 2010. Munger later described the investment as one of the best moves he ever made at Berkshire.

Starting in 2022, however, Berkshire began gradually reducing its position after BYD’s share price had risen more than twentyfold. By mid-2023, the stake had already fallen below 5%, leaving the firm with around 54 million shares — a level no longer requiring public disclosure under Hong Kong’s rules.

Buffett never gave a detailed reason for the sale, though in 2023 he acknowledged BYD as a remarkable company led by a remarkable founder. He also said Berkshire was looking for better ways to deploy the capital. Around the same time, the group offloaded almost all of its $4 billion position in Taiwan Semiconductor Manufacturing Company just months after initiating it.

Berkshire’s portfolio continues to focus largely on U.S. companies, with Apple as its single largest holding at about $68 billion, followed by big stakes in American Express, Bank of America, and Coca-Cola. BYD, founded in 1995 by Wang Chuanfu, started in batteries before moving into gasoline cars in 2005 and electric vehicles in 2010, eventually becoming the world’s top EV producer.