By PANG Yu
BYD stock suffered a minor collapse Wednesday as Berkshire Hathaway sold less than 1 percent of its holding in the EV and phone maker. Warren Buffet’s company still holds about 219 million shares, about 20 percent of the company. Buffett acquired the stock for HK$1.8 billion 14 years ago. This is the first sale.
Berkshire sold 6 million shares, cashing out about HK$1.7 billion (US$220 million), but a questionable sell, considering that the EV industry is thriving in China. In H1, BYD’s profit was up 206 percent to 3.6 billion yuan, both new highs. BYD outsold all other EV makers across the world, shipping 641,400 cars, more than in all of 2021.
Berkshire’s minor selloff has put some pressure on the shares of BYD and its peers, but it doesn’t mean the EV maker has peaked. The price shift may be more driven by Buffet watchers than anything fundamental. Shares in PetroChina, the listed arm of the state-owned China National Petroleum Corporation, reached a new high in 2007 after Berkshire sold.
