Berkshire Hathaway Reduces Stake in BYD

Warren Buffett's Berkshire Hathaway has reduced its stake in Chinese electric vehicle (EV) manufacturer BYD to 4.94%, below the 5% threshold that mandates public disclosure of share sales. This marks a significant decrease from its previous stake of 7.02% just a month prior and follows a series of divestments that began in August 2022 after BYD's stock price peaked. Berkshire's initial investment in BYD in 2008 was approximately $230 million for a 10% stake, and since then, BYD has emerged as a leading player in the global EV market, briefly surpassing Tesla in sales. The recent stake cut has led to a decline in BYD's stock price, which fell over 3% following the announcement. Analysts suggest this move may reflect Berkshire's strategy to focus on U.S. investments amid ongoing geopolitical tensions. BYD continues to perform well operationally, reporting record sales of new energy vehicles despite the recent stock fluctuations.