BYD shrugs off Buffett’s Berkshire sell-down

BYD has confirmed that Berkshire Hathaway completely sold off its remaining shares earlier this year, ending a 17-year run that began in 2008.

The Chinese electric vehicle maker responded on Weibo, where public relations executive Li Yunfei wrote:

“In August 2022, Berkshire began gradually reducing its holdings of company shares purchased in 2008, and by last June, its stake had fallen below 5% … Investing in stocks involves both buying and selling, which is completely normal … We are grateful for Charlie Munger’s and Warren Buffett’s recognition of BYD, as well as for the investment, support, and companionship over the past 17 years … Praise to all long-term believers!”

The statement confirmed what we first reported last week and framed the exit as routine trading rather than a negative judgment.

Executive Vice President Stella Li, speaking during an interview on CNBC Europe’s Access Middle East, echoed that position. She said Warren and Charlie “loved BYD and its management, but they are investors, so naturally buying and selling is their business, so it’s not because they don’t like us.”

The company avoided defensive language, instead emphasizing that the relationship was rooted in long-term confidence, even if the investment cycle had run its course.

BYD stock drops after confirmation and growth outlook weakens

Despite the calm front from BYD, investors reacted quickly in Hong Kong. Shares of the automaker slid more than 6% this week after the confirmation of Berkshire’s full exit. Even with the drop, the stock remains up just under 20% since January, showing the market still values its growth.

Special adviser Alfredo Altavilla added context in remarks reported by Reuters, stating that Buffett “made a profit of 20 times the capital he invested. He did very well to do what he did.” Altavilla also explained that:

“We’ve been extremely glad to have had Buffett as an investor, but the fact that he monetized his position is exactly what Berkshire Hathaway does for a living: buying, earning and selling.”

The reaction comes at a moment when BYD is already cutting back. The company reduced its 2025 sales target by 16%, announced price reductions through the end of the year, and slowed production lines.

Last month, it also reported its first quarterly profit decline in more than three years, pointing to a clear cooling in its rapid expansion. 

These developments show the company under pressure at the same time Berkshire closed its position, which magnified market concerns even though management brushed it off.

Berkshire lifts its Japanese stakes while closing out BYD

While one door closed in China, Berkshire opened another in Japan. Mitsui said this week in a statement that it had been informed Berkshire now holds 10% or more of the voting rights in the trading house after further acquisitions.

In March, Berkshire disclosed a 9.8% stake, equal to 285,401,400 Mitsui shares, valued at about $7.3 billion at that day’s close.

By late last month, a Mitsui official told Reuters Berkshire had raised its stake again but did not provide a figure.

Around the same time, Mitsubishi announced in a regulatory filing that Berkshire’s stake had increased to 10.2% from 9.7%.

Other holdings in Itochu, Marubeni, and Sumitomo were not updated, but analysts note it would not be surprising if those stakes also crossed the 10% mark.