In a surprising development, Berkshire Hathaway, the investment firm led by Warren Buffett, has sold all of its shares in the Chinese electric vehicle company BYD. The company first invested in BYD in 2008, buying 225 million shares for $230 million. The decision to invest came at the urging of Charlie Munger, Buffett’s longtime business partner.
Over the years, the investment grew dramatically. BYD’s stock increased by roughly 3,890%, turning the original $230 million investment into a multi-billion-dollar holding. At one point, the shares were valued at around $9 billion, making it one of Berkshire Hathaway’s most profitable investments.
Berkshire began reducing its BYD position in August 2022. By June 2023, the firm had sold almost 76% of its stake, leaving just under 5% of the company’s outstanding shares. Crossing below that threshold allowed Berkshire to continue selling shares without reporting each transaction publicly under Hong Kong exchange rules.
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Recent filings from Berkshire Hathaway Energy, the subsidiary that held the BYD shares, confirmed that as of March 31, 2025, the investment value was listed as zero. A spokesperson from Berkshire also confirmed that the company had fully exited its stake. The sales continued steadily even after the holding fell below the reporting threshold, showing a deliberate and complete exit.
A Bold Investment That Paid Off
The original BYD investment was considered a bold move at the time. Charlie Munger had praised BYD and its CEO, Wang Chuanfu, calling them “extraordinary” and noting the company’s innovative approach. This foresight proved to be remarkable, as the shares appreciated enormously over nearly two decades.
Despite the enormous profits, Berkshire chose to sell the position. Warren Buffett stated in 2023 that BYD remains an “extraordinary company” run by an “extraordinary person,” but the firm believed it could find other uses for the capital. This careful and measured decision reflects Berkshire Hathaway’s strategic approach to managing investments, balancing long-term growth with the ability to act decisively when opportunities arise elsewhere.
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The sale of BYD shares follows a similar exit from Taiwan Semiconductor, a stake worth roughly $4 billion. Buffett explained that geopolitical risks, including Beijing’s claims over Taiwan, were factors in that decision. He described the world as “dangerous” and emphasized the importance of evaluating risk when making investment choices.
Focus on Long-Term Strategy
Berkshire Hathaway is known for prioritizing long-term value over short-term gains. Buffett has repeatedly criticized the pressure companies face from quarterly earnings guidance, which can lead them to prioritize immediate profits at the expense of sustainable growth.
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While Berkshire continues to provide regular financial reporting, Buffett and Jamie Dimon have argued that companies should avoid predicting future earnings. They say that forecasts can push businesses to make decisions that are not in their long-term interest, such as cutting back on spending for growth or innovation.
Even Donald Trump has suggested reducing corporate reporting from quarterly to semi-annual. While Buffett supports regular reporting, he agrees with the idea of minimizing short-term pressures to help managers focus on running their companies effectively.
By fully selling its BYD shares, Berkshire Hathaway has demonstrated a mix of patience, strategic foresight, and decisive action. The exit marks the end of one of the firm’s most profitable and closely watched investments in recent history, showcasing its long-term investment philosophy in action.
