Berkshire Hathaway is finally exiting China’s BYD after 17 years. Charlie Munger’s $230 million investment has grown more than 20-fold.
Warren Buffett has finally exited BYD. Berkshire Hathaway has completely exited its stake in the Chinese electric vehicle manufacturer, ending a 17-year investment that proved to be one of the most profitable in the holding company’s history of the Omaha-based guru.
According to documents filed by the Berkshire subsidiary, the value of the investment in BYD was marked to zero at the end of March 2025, compared to $415 million at the end of 2024. The exit represents the conclusion of what many consider one of the group’s most successful investments in the technology and electric automotive sectors. Berkshire had in fact purchased 225 million BYD shares at a cost $230 million, an investment that has grown more than 20-fold over the years, generating a return of over 3,000%.
Charlie Munger’s bet that changed everything
The BYD investment was not Warren Buffett’s decision, but rather that of his longtime partner Charlie Munger, who passed away in November 2023. Berkshire first invested in BYD in 2008, purchasing 225 million shares at the urging of Buffett’s close partner, who had identified the Chinese battery and electric vehicle giant as a potential success.
At the 2009 annual shareholder meeting, Munger declared, "I may sound crazy, but I consider the company and CEO Wang Chuanfu ’miraculous’." This confidence proved prophetic: BYD has become one of the world’s leading manufacturers of electric vehicles, rivaling Tesla for global leadership in the sector.
At the time, the investment represented a bold bet for Berkshire, traditionally focused on more conservative sectors such as insurance, utilities, and consumer goods. However, BYD has proven to live up to expectations, growing into the electric automotive giant we know today.
The gradual exit began in 2022
Berkshire began reducing its position in August 2022, kicking off a gradual exit process that lasted nearly three years. In August 2022, Buffett began exiting BYD, reducing his stake from 20.04% to 19.92%.
The timing of the sale reflects Buffett’s long-term investment strategy, typically holding positions for many years. "Buffett generally holds his stocks for many years; he eventually exits most of them when he considers them fully valued, or when their future prospects have become less attractive," explained David Kass, a finance professor at the University of Maryland.
By July 2024, Berkshire Hathaway had cut its stake in BYD to 4.94%, falling below Hong Kong’s statutory disclosure threshold of 5%. The announcement of the full exit caused BYD shares to fall 3.4% in Hong Kong.
Berkshire’s decision to fully divest from BYD therefore marks not only the end of one of the company’s most profitable investments, but also a possible signal of caution toward the Chinese market, especially at a time of growing geopolitical tensions between the United States and China.
Original article published on Money.it Italy 2025-09-22 14:12:00. Original title: Buffett scarica questa società. Era nel suo portafoglio da 17 anni
