BYD Thanks Warren Buffett, Charlie Munger For Belieiving After Stake Sale, Says They 'Loved' Chinese Auto Giant: 'It's Not Because They Don't Like Us'

Chinese auto maker BYD Co. Ltd. (OTC: BYDDY) (OTC: BYDDF) thanked Warren Buffett and Charlie Munger for believing in the company, while confirming the exit of Berkshire Hathaway Inc. (NYSE: BRK) (NYSE: BRK) from the company earlier this year, ending a 17-year investment relationship.

Check out the current price of BYDDY stock here. 

BYD Confirms Exit, Credits Munger’s Vision

According to CNBC, BYD executive Li Yunfei shared on Weibo that Berkshire started cutting its stake in August 2022, with the holding dropping below 5% by June 2024. “We are grateful for Charlie Munger‘s and Warren Buffett‘s recognition of BYD,” Li further wrote.

The original 2008 investment was backed by Munger, who referred to BYD as a “miracle.”

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Berkshire’s first-quarter filing revealed that it no longer has any stake in BYD, confirming the complete sale of over 225 million shares.

BYD Executive Vice President Stella Li remarked that Buffett and Munger “loved” BYD but pointed out that “buying and selling is their business.” A BYD adviser also confirmed that Berkshire saw a 20 times return on its initial investment.

“They are investors, so naturally buying and selling is their business, so it’s not because they don’t like us.”

Market Response Negative

Shares of the global high-tech company dropped more than 6% this week in Hong Kong following the confirmation of Berkshire’s divestment. The stock has fallen 28% year-to-date, reflecting wider concerns about the company’s slowing growth.

Company Fundamentals Weakening

BYD recently lowered its 2025 sales target by 16% and reported its first quarterly profit drop in three years last month. The company has also cut prices through the end of the year and slowed production due to weakening demand.

Berkshire Shifts Focus to Japan

While exiting China, Berkshire increased its Japanese holdings.

Mitsui & Co. (OTCPK: MITSY) confirmed that Berkshire now owns over 10% of its voting rights, with the stake valued at around $7.3 billion. Mitsubishi Corp. (OTCPK: MSBHF) also reported that Berkshire raised its position to 10.2%.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.