The most famous investor on the planet made a colossal fortune on BYD shares (2 photos)
The end of a landmark investment
In 2008, a bold bet was made on little-known Chinese automaker BYD. Warren Buffett’s investment company, Berkshire Hathaway, invested HK$1.8 billion in the then-unproven global company. Seventeen years later, that bet paid off, and Buffett decided it was time to leave.
A quarterly report from Berkshire Hathaway Energy confirms that the company has sold its entire stake in BYD. The exit has been gradual. The company has been quietly reducing its stock over 15 separate rounds of sales since 2022. Before the sales began in late summer of that year, Berkshire’s stake was valued at about $7.7 billion.
From penny stock to global player
When Buffett first bought 225 million BYD shares on the advice of investment partner Charlie Munger, the company’s shares were trading at just HK$8. BYD shares have risen 3,890% since Buffett’s investment, according to data. The exact amount of profit Berkshire Hathaway made is not disclosed, but it is estimated to be in the billions of dollars.
After the sale, BYD’s general manager of branding and public relations, Li Yunfei, thanked Buffett and Berkshire Hathaway for the investment. At its peak, the investment firm owned about 10 percent of the Chinese automaker.
The news of the exit negatively affected the market, with BYD shares falling 3.4 percent, making them one of the weakest performers on the Hong Kong index of Chinese companies.
In stock investing, buying and selling is a normal part of the process. We appreciate Munger and Buffett’s recognition of BYD, as well as their investment, support and partnership over the past 17 years. We value all long-term investments. 
BYD’s future prospects
Last year, BYD sold a total of 4.27 million vehicles worldwide. Of these, 1.76 million were fully electric vehicles and 2.49 million were plug-in hybrids. The company had hoped to deliver up to 5.5 million vehicles this year, but due to increased competition and a slowdown in the domestic market, it lowered that forecast to 4.6 million vehicles.
Berkshire Hathaway’s full exit from BYD marks the end of one of the most famous and successful investments in the automotive sector. While the short-term market reaction was negative, BYD’s long-term success demonstrated the viability of its business model. The company continues to dominate the electric vehicle market, and its future growth rate will likely depend on its ability to adapt to global challenges and competition. The episode also serves as a reminder of the cyclical nature of investment, where even the most successful partnerships can naturally reach their logical conclusion.
