OMAHA, Neb. — Warren Buffett’s company has trimmed its stake in Chinese electric car and battery maker BYD for the very first time because it bought the shares in 2008, an investment which has soared in value.
Berkshire Hathaway said in a regulatory filing Tuesday with the Hong Kong stock market that it had sold 1.33 million of its BYD shares for roughly $47 million ($368.8 million Hong Kong dollars).
Berkshire paid $232 million for the 225 million BYD shares it bought in 2008. By the finish of this past year, the value of these shares had ballooned to nearly $7.7 billion. The success of the BYD investment is one of these of why so many investors follow Buffett’s moves closely because he’s got an amazingly successful background on the decades.
BYD said within an earnings report this week that sales of its vehicles continued to climb in the initial half of this season and make it increase market share, even while auto sales slowed in its market of China. BYD said its revenue jumped nearly 66% in the initial half of this season because of the rapid growth in its electric vehicle sales, and its own net income a lot more than tripled to $520 million (3.6 billion yuan).
Berkshire said it owned about 7.7% of BYD prior to the latest stock sales, and that figure won’t change much following the sales. Berkshire said its holdings of the Hong Kong-issued shares of BYD dipped slightly from 20.49% to 19.92%.
Previously, Buffett and Berkshire Vice Chairman Charlie Munger have heaped praise on BYD Chairman and founder Wang Chanfu and said these were buying him a lot more than in BYD’s technology. Munger has said that Wang were able to accomplish several feats that seemed impossible at that time, including taking one-third of the lithium battery market from Japanese manufacturers by 2010.
Buffett even took the rare step of visiting a BYD factory in China in 2010 to show his support for the business. Hdidnt immediately respond Tuesday to questions concerning the BYD stock sale.
Besides investments, Buffetts Omaha, Nebraska-based conglomerate also owns a lot more than 90 companies outright including Geico insurance, BNSF railroad, several major utilities and an eclectic range of retail and manufacturing companies such as for example Dairy Queen, Helzberg Diamonds and Precision Castparts.