Buffett ends 17-year bet on BYD, shifts Berkshire focus from China to Japan
“Warren Buffett’s investment company has sold its stake in Chinese electric vehicle manufacturer BYD Co., a move that has emerged as one of the major global news stories in recent days.”
According to Forbes, BYD shares have fallen by about 30 percent from their all-time high reached four months ago. The global market is now closely watching the company’s ability to withstand competition amid an intense price war in China.
Previously, BYD had surpassed Tesla in global sales, reinforcing its market leadership. In January 2025, the company sold more than 318,000 electric and hybrid vehicles, a 161 percent increase from the previous year, capturing nearly 15 percent of China’s domestic car market, the world’s largest.
In April, Build Your Dreams (BYD Co.), along with other Chinese manufacturers, regained a significant share of the European electric vehicle market, reaching its highest level in nine months despite EU tariffs imposed last year. As Bloomberg reported, Chinese brands captured nearly 9 percent of the European EV market, up from just 1 percent a year earlier, while also increasing sales of hybrid and gasoline models. Experts described this as a direct challenge to European competitors, noting that Chinese manufacturers had successfully adapted to higher tariffs and returned to growth.
Source: Reuters
In March 2025, BYD announced plans to raise $5.2 billion through a share offering to fund research, expand internationally, replenish working capital, and pursue other corporate goals. In the first quarter, the company posted a net profit of 9.15 billion yuan ($1.3 billion), exceeding analysts’ expectations and significantly outpacing Tesla, whose profit was $409 million.
However, these achievements are now under scrutiny, and BYD shares have entered a steady decline. Reports indicate that the company will delay mass production at its new plant in Hungary until 2026, although its planned production launch in Türkiye remains on schedule.
Buffett’s stake in BYD generated roughly $2 billion in profits for Berkshire Hathaway, thanks to the stock’s long-term growth. Since late 2020, the value of the stake had risen 23 percent, from nearly $6 billion to almost $8 billion.
Buffett first acquired a stake in the Chinese startup in 2008 for $232 million. As the company’s stock rose, so did his profits. The billionaire correctly anticipated the importance of the Chinese market in the global electric and hybrid vehicle industry: since his initial investment, BYD shares have increased sixtyfold.
Buffett began reducing his stake in mid-2022, and by June 2024 it had fallen below 5 percent.
Source: Xinhua
In July 2022, BYD shares fell 10 percent on the Hong Kong exchange amid rumors that Buffett planned to sell. Berkshire began gradually reducing its position the following month. Recently, it was confirmed that the billionaire’s stake in BYD had fallen to zero.
BYD responded calmly to the development. The company confirmed that earlier this year, Berkshire Hathaway had sold its remaining shares.
On Weibo, public relations specialist Li Yunfei wrote: “Investing in stocks involves both buying and selling, which is completely normal… We are grateful to Charlie Munger and Warren Buffett for recognizing BYD, as well as for their investment, support, and companionship over the past 17 years… Praise to all the long-term believers!”
The company presented the exit as a routine business transaction. Executive Vice President Stella Li told CNBC Europe’s Access Middle East program: “Warren and Charlie loved BYD and its management, but they are investors, so naturally buying and selling is their business, and it’s not about them disliking us.”
Source: Cryptopolitan
The company avoided defensive statements, emphasizing that the relationship with Berkshire Hathaway was based on long-term trust, even if the investment cycle had ended. Nevertheless, investors in Hong Kong reacted quickly, and BYD’s shares dropped more than 6 percent last week after Berkshire’s complete exit was confirmed. Despite the decline, the stock has risen nearly 20 percent since January.
While competitors may anticipate BYD’s potential difficulties, analysts note that the stock’s drop reflects negative market expectations following Buffett’s departure rather than underlying company problems.
Alfredo Altavilla, a special advisor to BYD, told Reuters: “Buffett made a profit twenty times greater than the capital he invested. He did the right thing by monetizing his position… We were extremely happy that Buffett became our investor, but the fact that he monetized his position is exactly what Berkshire Hathaway does for a living: buy, earn, and sell,” Cryptopolitan reported.
Berkshire is not leaving Asia entirely. After exiting China, it appears to be shifting focus to Japan. Last week, Mitsui announced that it had received information indicating that, following a series of acquisitions, Berkshire now owns 10 percent or more of the voting shares in the trading house.
By Tural Heybatov
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