BYD (BYDDF) Stock: Buffett's Berkshire Exits Entire Stake After 17 Years

TLDR

Table of Contents

Warren Buffett’s Berkshire Hathaway has completely sold its entire stake in Chinese EV maker BYD, ending a 17-year investment
BYD stock dropped over 3% in Hong Kong trading following news of Berkshire’s complete exit
Berkshire originally bought 225 million BYD shares in 2008 for $230 million on Charlie Munger’s recommendation
The investment generated roughly 3890% returns over 17 years before the complete sale by March 2025
BYD faces intense competition in China’s EV market and has lost $45 billion in market value over four months

BYD shares tumbled more than 3% in Hong Kong trading after reports confirmed Warren Buffett’s Berkshire Hathaway had completely exited its stake in the Chinese electric vehicle maker. The sale marks the end of one of Berkshire’s most profitable international investments.

Berkshire originally purchased 225 million BYD shares in 2008 for $230 million. The investment came at the urging of Charlie Munger, Buffett’s late partner who famously called BYD’s CEO Wang Chuanfu a “damn miracle.”

Warren Buffett and Berkshire Hathaway $BRK.B no longer own any shares of BYD – CNBC pic.twitter.com/AxkQZIQtw1
— Evan (@StockMKTNewz) September 21, 2025

The timing proved incredible. BYD shares increased roughly 3890% during Berkshire’s ownership period, turning the initial $230 million investment into billions.

Berkshire began trimming its position in August 2022 after the stake had grown to $9 billion following a 41% jump in the second quarter. The company steadily reduced its holdings over the following months.

By June 2024, Berkshire’s stake had fallen below 5% of BYD’s outstanding shares. This threshold freed the company from Hong Kong exchange disclosure requirements for future sales.

The Complete Exit

A recent filing by Berkshire Hathaway Energy, the subsidiary that held the BYD shares, listed the investment’s value as zero as of March 31, 2025. A Berkshire spokesperson confirmed the entire position had been sold.

The sales apparently continued even after the stake dropped below the 5% disclosure threshold last year. Based on filing values, Berkshire completed its exit sometime between June 2024 and March 2025.

BYD’s management responded graciously to news of the sale. Li Yunfei, BYD’s general manager for branding and PR, posted on Weibo thanking Munger and Buffett for their “17 years of investment, support, and companionship.”
Buffett hasn’t provided detailed explanations for the BYD exit. In 2023, he told CNBC that while BYD remains an “extraordinary company” run by an “extraordinary person,” he believed Berkshire could “find things to do with the money that I’ll feel better about.”

The sale comes as BYD faces mounting challenges in China’s increasingly competitive EV market. Tesla, Nio, and Li Auto have intensified pressure on the company’s market position.

Market Pressures Mount

BYD has responded to competition with aggressive price cuts to protect market share. While this strategy has helped maintain sales volume, it has pressured profit margins and overall profitability.

China’s broader economic slowdown has added another layer of difficulty. Policy uncertainty in the region may have influenced Berkshire’s decision to exit completely.

The company has lost $45 billion in market value from its all-time highs over the past four months. This decline reflects investor concerns about the intensifying competitive environment.

BYD is now aggressively expanding internationally to offset domestic market pressures. The company hopes global expansion can help protect both market share and profitability.

Despite these headwinds, Wall Street analysts remain optimistic about BYD’s prospects. On TipRanks, the stock carries a Strong Buy consensus rating based on eight Buy recommendations and two Hold ratings.

The average price target of $25.65 suggests 76.2% upside potential from current trading levels. Analysts appear confident in the company’s long-term growth strategy despite near-term challenges.

Berkshire’s complete exit from BYD was disclosed in the subsidiary’s March 31, 2025 filing showing zero value for the investment.

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