June 18, 2024 – Berkshire Hathaway, owned by Warren Buffett, has sold 1.3 million shares of BYD’s Hong Kong-listed stock on June 11th, realizing approximately HK$310.5 million. Following this reduction, Berkshire Hathaway’s stake in BYD’s issued H shares has decreased from 7.02% to 6.90%.
This marks the 14th publicly disclosed reduction of BYD H shares by Buffett. The most recent occasion was on October 25th of last year, when Berkshire Hathaway sold 820,500 shares at an average price of HK$245.86 per share, reducing its shareholding from 8.05% to 7.98%.
In September 2008, Berkshire Hathaway subscribed to 225 million BYD H shares at a price of HK$8 per share. Berkshire Hathaway first reduced its holding in the stock on August 24th, 2022, when its shareholding stood at 19.92%, and the share price had increased by 30 times compared to the subscription price.
Recently, the European Commission announced new tariffs on imports of Chinese electric vehicles (EVs). According to the new tariff regulations, some Chinese automakers will face tariffs up to 38%. However, as BYD cooperated with the European Commission’s investigation into imports of Chinese-made electric vehicles, its tariff rate was set at a relatively lower 17.4%.
Despite the new tariff barriers, BYD expects its electric vehicle business to still achieve considerable profits in the European market.
According to a report by 21st Century Business Herald, regarding the reasons for Buffett’s share reduction, relevant sources stated, “The company is communicating with the other party.” When asked if the company’s valuation is too high, the aforementioned source said, “The company’s operating conditions are good, and sales and profits continue to grow.”
