4,500% return! Warren Buffett's Berkshire exits BYD after 17 years, makes eye-popping gains

Warren Buffer's investment firm Berkshire Hathaway sold all of its stake in the Chinese electric-vehicle maker BYD Co after making massive returns on its investment.

However, the stake sale by Berkshire Hathaway soured sentiment around BYD's stock as it slid nearly 4% in trade today, September 22.

BYD share price

Shares of BYD Co. slid as much as 3.6%, the most in three weeks, to be among the worst performers on a gauge of Chinese shares listed in Hong Kong, as per a Bloomberg report.

As per a Reuters report, the filing by Berkshire's energy subsidiary recorded the value of its BYD investment as zero as of end-March, down from $415 million at the end of 2024.

Berkshire rakes in massive profit from BYD investment

Buffett’s investment firm held BYD stock for almost two decades, having first bought 225 million shares in September 2008. The stock surged more than 4,500% since the day before the first purchase to March 31 this year, making a massive return for the company.

Berkshire had paid $230 million for about 225 million shares, equivalent to a 10% stake at the time. However, it began offloading its shares in the Chinese EV firm in mid-2022, and its holding slipped below the 5% mark last year. A breach of that threshold meant the US firm was no longer obligated by the Hong Kong Stock Exchange to disclose future sales, stated Bloomberg.

The past two decades have seen BYD go from a little-known Chinese battery provider for cell phones to the nation’s biggest electric and hybrid vehicle maker.

Growing competition bites BYD

BYD’s shares have tumbled about 30% from the all-time high reached four months ago.

The fall comes as concerns began mounting over BYD’s ability to withstand intensifying competition amid a brutal price war in China.

Berkshire Hathaway first invested in BYD after Charlie Munger — Warren Buffett’s longtime business partner — endorsed the company following a recommendation from Li Lu, Chairman of Himalaya Capital, who had initially purchased the stock.

“In stock investing, buying and selling are normal practices,” Li Yunfei, a general manager for branding and public relations at BYD, said in a Chinese social media Weibo post on Monday. “We’re grateful to Munger and Buffett for their recognition of BYD, and for their 17 years of investment, support, and companionship.”

A spokesperson for BYD referred Bloomberg to Li’s Weibo post when asked for comment. Berkshire did not immediately respond to an email sent outside of regular working hours.

(With inputs from agencies)