Berkshire Hathaway Trims BYD Stake: $39.8 Million in Shares Sold

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Berkshire Hathaway, the renowned investment company owned by Warren Buffett, recently sold 1.3 million Hong Kong-listed shares of the electric vehicle manufacturer BYD (002594.SZ). This transaction was valued at HK$310.5 million, equivalent to approximately $39.8 million, according to a stock exchange filing revealed on Monday.

The sale, which took place on June 11, resulted in a slight reduction of Berkshire Hathaway’s stake in BYD. Specifically, Berkshire’s ownership of BYD’s issued H-shares decreased from 7.02% to 6.90%, as documented in the filing to the Hong Kong stock exchange.

BYD, a major player in the electric vehicle industry, has been one of the significant investments for Berkshire Hathaway, reflecting Buffett’s growing interest in the renewable energy sector. This sale marks a continuation of Berkshire Hathaway’s strategic management of its holdings in BYD. Over the years, Berkshire has made several adjustments to its stake in BYD, aligning with its broader investment strategy and market conditions.

The decision to sell these shares comes amid a dynamic period for the electric vehicle market, which has been experiencing rapid growth and heightened competition. BYD itself has been at the forefront of this market expansion, leveraging its innovative technology and robust production capabilities. Despite the sale, Berkshire Hathaway remains a substantial shareholder in BYD, indicating continued confidence in the company’s potential and the broader electric vehicle sector.

This transaction is part of Berkshire Hathaway’s broader portfolio management approach, where the company regularly reassesses and adjusts its investments to maximize returns and manage risks. Warren Buffett, known for his astute investment strategies, has a long history of making calculated decisions that align with long-term growth prospects.

The sale of 1.3 million BYD shares by Berkshire Hathaway for HK$310.5 million is a strategic move that slightly reduces its stake in the electric vehicle maker from 7.02% to 6.90%. This adjustment reflects Berkshire’s ongoing strategy of active portfolio management and adaptation to market developments, particularly in the fast-evolving electric vehicle industry.