Berkshire Hathaway fully exits its stake in China’s BYD

Berkshire Hathaway sells BYD stake

Warren Buffett’s company, Berkshire Hathaway, has sold its stake in Chinese electric vehicle maker BYD. The sale was confirmed after Berkshire Hathaway Energy’s first-quarter report showed the position had been exited.

This marked the culmination of a 17-year investment that began with a modest purchase. Berkshire first bought 225 million shares of BYD in late 2008 for just over $1 per share. The total purchase price was $232 million. This initial investment was a small part of Berkshire’s portfolio.

BYD shares drop after announcement

BYD shares slipped by about 3%–3.4% in Hong Kong following reports of Berkshire’s exit. The decline in stock price demonstrates the significant impact that a large investor’s actions can have on a company’s value.

It also highlights investor concerns about BYD’s slowing growth.BYD’s general manager, Li Yunfei, posted on Weibo that “buying and selling are normal” in stock trading. He also thanked both Warren Buffett and Charlie Munger for their support of the company.

A huge profit from the investment

Berkshire’s $232 million investment likely generated approximately $7 billion in profit, representing a return of about 30 times the original cost. This makes BYD one of Berkshire’s most successful international investments ever.

The sale returns a significant amount of money to Berkshire’s coffers for other investments. Berkshire began selling its shares in August 2022 when the stake peaked at $9 billion. The company had reduced its holding by 76% by July 2024, and the final exit was confirmed as of March 31, 2025.

Buffett’s long-term investing style

For nearly 14 years, Berkshire Hathaway held its BYD shares without selling any. This decision exemplifies Warren Buffett’s “buy-and-hold” strategy. He believes in investing in a great company and holding onto it for a long time to gain the best returns.

Buffett hinted at the sale in April 2023, saying Berkshire would “find things to do with the money that I’ll feel better about.” He also said that he had reevaluated geopolitical risks, which may have influenced the decision.

Charlie Munger’s push for BYD

Charlie Munger, who passed away in November 2023, referred to the BYD investment as his “greatest contribution” to Berkshire. He was the one who pushed Buffett to make the investment.

Munger had a strong belief in BYD’s founder and CEO, Wang Chuanfu. Munger famously praised Wang, calling him a mix of Thomas Edison and Jack Welch. He also said that BYD was “so much ahead of Tesla in China it’s almost ridiculous,” emphasizing BYD’s strength in its home market.

BYD’s early days as a battery maker

BYD started as a rechargeable battery company in 1995 with just 20 employees. The company’s goal was to compete with big Japanese battery makers. BYD grew quickly and became a major supplier for phone companies like Motorola and Nokia.

BYD’s name stands for “Build Your Dreams,” which reflects the founder’s ambition. The company later applied its battery technology expertise to the electric vehicle market, a key to its future success.

BYD’s shift into car manufacturing

In 2003, BYD surprised many by buying Xi’an Qinchuan Automobile. This marked its official entry into the car industry. The company’s first mass-produced car, the BYD Flyer, was launched in 2005.

It was a very affordable compact car.BYD’s first hybrid car, the F3DM, was released in 2008, followed by its first pure electric car, the e6, in 2009. These early moves showed BYD’s commitment to making new energy vehicles.

BYD’s growth in electric vehicles

BYD has become a leading player in the electric vehicle (EV) market. In the fourth quarter of 2023, BYD was the world’s top seller of new energy vehicles (NEV), including pure electric and plug-in hybrid cars.

The company ceased production of gasoline-only cars in March 2022. In the first half of 2025, BYD’s revenue increased by 23.3% to about 371.3 billion yuan. Revenue from its car business increased by 32.5% during the same period, demonstrating strong growth in its primary business.

BYD’s technological inventions

BYD has developed its special technology to stand out in the competitive EV market. The “Blade Battery” is a key invention that is remarkably safe and space-efficient. It passes safety tests that other batteries fail, which is a big selling point.

The company’s “dual-mode hybrid power” system is another vital technology. This system allows cars to switch between gasoline engines and electric motors. These innovations have enabled BYD to produce a wide range of cars for various customers.

Competition in the EV market

BYD is facing tough competition in the Chinese EV market. Other carmakers, such as Geely and Leapmotor, have launched new cars at very low prices. This has led to a significant price war, making it harder for BYD to keep its high growth.

For instance, in July and August 2025, BYD’s sales were flat. BYD is fighting back by offering discounts. The official price of the BYD Qin L was 99,800 yuan, but a cash discount was offered, lowering the price to 87,800 yuan.

BYD’s global presence

BYD is now a global company. Its cars and buses are sold in more than 100 countries and regions. The company’s goal is to become a worldwide leader in electric vehicles.

It has opened new factories in Hungary and Brazil to support its global growth.BYD’s expansion is gaining a foothold in Europe. Registrations for BYD cars increased by 225% in July 2025 compared to last year.

BYD’s financial challenges

Despite its overall success, BYD has faced some recent financial issues. The company’s quarterly profit declined for the first time in over three years in the second quarter of 2025, dropping 29.8% from the previous year.

This was a surprise to many investors. Due to the slowdown, BYD has also lowered its annual sales goal. It now aims to sell 4.6 million vehicles, down from its original target of 5.5 million.

BYD’s hypercar success

BYD has also shown its ability to make high-performance cars. Its luxury sub-brand, Yangwang’s U9 Xtreme hypercar, was named the fastest production car in the world in September 2025. It reached a top speed of 308.4 mph at a test track in Germany.

This achievement highlights BYD’s engineering skills and its ability to compete with top-tier carmakers. The car features a quad-motor powertrain that produces over 2,959 horsepower, demonstrating the significant advancements in electric car technology.

Munger’s praise for Wang Chuanfu

Charlie Munger’s admiration for BYD’s founder, Wang Chuanfu, was a key factor in the investment decision. Munger saw Wang as a talented inventor who had already performed “a couple of miracles” in the battery and cell phone parts business.

He believed in the power of a great leader. Munger felt that Wang was the right person to lead BYD into the future. He said, “I have never seen anything like it” when discussing Wang’s work, demonstrating his deep respect and trust.

Munger’s past comments

Charlie Munger also spoke about BYD’s quality and its success in direct terms. He said that the guy at BYD is “better at actually making things” than Elon Musk. This quote demonstrates Munger’s high regard for BYD’s ability to produce exceptional products.

He called the BYD investment his most significant contribution to Berkshire. He saw the company’s growth as a huge win for him and for Berkshire, proving that his instincts about the company were correct.

Curious how Porsche is balancing tradition with competition? Take a closer look at Porsche risks market share to stay made in Germany.

Berkshire’s largest holdings

After selling its BYD stake, Berkshire Hathaway’s portfolio remains focused on large, well-established American companies. On June 30, 2025, the company’s largest holding was Apple Inc., valued at $63.6 billion.

Berkshire holds significant stakes in American Express, valued at $48.4 billion, and Bank of America, valued at $28.6 billion. These investments demonstrate that Berkshire continues to invest in a diverse mix of companies to grow its business, even as it trims its holdings in some long-term winners.

Wondering what’s driving Tesla’s slowdown in its home market? Find out more in Why Tesla’s U.S. market share is dropping.

What’s your take on Buffett pulling out of BYD?

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This slideshow was made with AI assistance and human editing.