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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] New York, September 21, 2025 – Berkshire Hathaway, led by legendary investor Warren Buffett, has sold off its entire stake in Chinese electric vehicle maker BYD, marking the end of a 17-year investment, CNBC reported on September 21.
According to Berkshire Hathaway Energy (BHE)’s first-quarter financial report, the value of its BYD holdings stood at zero as of March 31, confirming the complete divestment. A Berkshire spokesperson also verified that the shares had been fully sold.
Berkshire first invested in BYD in 2008, purchasing 225 million shares for about USD 230 million at the strong recommendation of Vice Chairman Charlie Munger (late). Over the following 17 years, BYD’s share price soared between 3,890% and 4,500%, delivering enormous returns. Industry analysts estimate Berkshire earned roughly 39 times its initial investment, generating astronomical profits.
The exit was not abrupt. Berkshire began gradually reducing its stake in August 2022, bringing its holdings below the 5% disclosure threshold on the Hong Kong Stock Exchange by June 2024. The remaining shares were subsequently sold in stages, with this quarter’s report confirming the final departure.
Buffett has not explicitly stated the reason for the sale, but in a 2023 interview he hinted at capital redeployment, saying: “BYD is a wonderful company, but we may find more satisfactory opportunities for that capital.”
Analysts point to geopolitical tensions between the U.S. and China as a key factor, comparing the move to Berkshire’s swift exit from Taiwan’s TSMC shortly after citing geopolitical risks. Additionally, intensifying price wars and slowing growth in China’s EV market are believed to have influenced the decision.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
