Berkshire Hathaway, the famed conglomerate led by Warren Buffett, recently sold 2.5 million shares of Chinese electric-vehicle leader BYD, worth about $86 million. The reason for the sale remains unclear, and does not seem to jibe with comments made by Berkshire Vice Chairman Charlie Munger.
This is not the first time that Berkshire Hathaway has sold BYD shares. Over the past couple of years, the company has sold several small blocks of BYD stock. In May of this year, for example, it sold about 2 million shares worth approximately $60 million.
Despite these sales, it is worth noting that Berkshire Hathaway originally purchased its BYD stake in 2008. Over the intervening years, BYD shares have increased in value roughly 33-fold, equating to an average annual gain of approximately 26%.
BYD’s shares have taken off recently, largely due to the rise in the popularity of electric vehicles. Tesla is currently the world’s largest seller of all-battery EVs, with BYD coming in at a close second. However, in China, BYD is the top EV seller. These two companies together account for approximately 30% of the entire global market for battery-electric cars.
Berkshire Hathaway Sells More BYD Stock, Despite CEO Praising Chinese EV Maker
Berkshire Hathaway has sold more shares of BYD, the Chinese electric-vehicle maker, despite Warren Buffett’s right-hand man, Charlie Munger, recently praising the company as being “much ahead of Tesla in China.” This move from Berkshire Hathaway comes in contrast to Munger’s comments, indicating that the company may not be as sold on the auto industry as it once was. However, investors seem used to sales from the multinational holding conglomerate, as BYD’s stock dips only slightly at 0.6% in overseas trading. Meanwhile, BYD’s U.S.-listed ADRs are up by 0.5% in Monday trading.