How Charlie Munger found an ideal investment option during the global financial crisis in 2008?
What began as a contrarian investment during one of the worst financial crises eventually turned into a multi-billion-dollar success story, with Berkshire reportedly earning profits of around $10 billion by the time it substantially exited the investment in 2025.
In the middle of the 2008 global financial crisis — when fear gripped markets and investors rushed to safety — late investing legend Charlie Munger spotted an opportunity that would go on to become one of the most profitable bets in the history of Berkshire Hathaway.
At Munger’s insistence, Berkshire Hathaway acquired nearly 10% stake in the Chinese electric vehicle (EV) maker BYD for $225 million in 2008. What began as a contrarian investment during one of the worst financial crises eventually turned into a multi-billion-dollar success story, with Berkshire reportedly earning profits of around $10 billion by the time it substantially exited the investment in 2025.
But what convinced Munger to back a little-known Chinese company long before the global EV boom was not just the business, but the extraordinary founder behind it. According to Munger, he was “betting on the horseman” at that time.
Charlie Munger’s conviction in Wang Chuanfu
A video clip of Munger speaking at the 2017 Daily Journal Annual Meeting has resurfaced on social media platform X, offering insight into why he believed BYD was an exceptional investment opportunity.
Munger described BYD founder Wang Chuanfu in glowing terms, calling him a “genius” with an unusual combination of traits rarely found in business leaders.
“I got to know Wang Chuanfu, even though he can't speak a word of English,” Munger said during the meeting.
“And Wang Chuanfu is a genius. And he’s shrewd. And he’s honest, and he’s a fanatic, and he loves his company,” he added, praising the entrepreneur’s ability to rapidly master new technologies and build capabilities at scale.
He believed Wang possessed a unique ability to execute and innovate — qualities he considered central to long-term investing success.
“Partly I’m betting on the horseman up there,” Munger said, suggesting that his confidence in BYD was significantly tied to Wang’s leadership and vision.
Why BYD stood out during the financial crisis
The timing of Berkshire’s investment made the bet even more remarkable. In 2008, the world economy was reeling from the collapse of major financial institutions, and risk appetite had evaporated.
China’s EV market was still nascent, and BYD was far from becoming the global automotive giant it is today. Yet Munger saw something others missed: a founder obsessed with innovation, a hardworking workforce, and a business positioned at the intersection of batteries and automobiles.
Munger highlighted BYD’s technological strength, particularly its ability to absorb and develop entirely new technologies.
“What he can do is just incredible. He learns whole new technologies,” Munger had said, underscoring Wang’s engineering-driven leadership.
He also pointed to the company’s workforce as a competitive advantage, noting the scale and dedication of its employees. At the time, Munger remarked that BYD employed hundreds of thousands of workers who could achieve things “you can’t believe.”
Munger also viewed Wang Chuanfu as a symbol of entrepreneurial success in China — someone who rose from humble beginnings to build a company independently.
He famously referred to Wang as the “eighth son of a peasant,” highlighting the founder’s rise and the pride many Chinese people took in a homegrown industrial success story.
Interestingly, Munger said he did not want Berkshire to fully acquire BYD because its identity as a Chinese company was part of its strength.
“So I wouldn’t want to destroy that Chinese image by buying BYD. It works better the way it’s going,” Munger said.
Turning $225 million into billions
The investment ultimately became one of Berkshire Hathaway’s most successful international bets. Berkshire purchased nearly a 10% stake in BYD for $225 million in 2008 through its subsidiary MidAmerican Energy (now Berkshire Hathaway Energy).
As BYD emerged as a global EV powerhouse and rival to companies such as Tesla, Berkshire gradually trimmed its holdings over the years. By 2025, the investment had generated an estimated profit of around $10 billion.
Berkshire Hathaway fully exited Chinese automaker BYD in 2025, ending a 17-year investment that grew over 20-fold in value in that period. A filing by Berkshire’s energy subsidiary recorded the value of its BYD investment as zero as of the end of March 2026, down from $415 million at the end of 2024.
It began selling those shares in 2022 after BYD’s share price had risen more than twentyfold.