Warren Buffett exits BYD investment after significant gains

Warren Buffett’s Berkshire Hathaway has completely exited its position in the Chinese electric vehicle manufacturer BYD as of March 2025. This follows a gradual reduction of its stake that began in 2022. Berkshire Hathaway originally invested approximately $230 million in BYD in 2008, a move that saw the investment's value multiply more than twenty times.

The divestment occurs as the Chinese automotive industry faces a complex landscape. While Chinese manufacturers are rapidly expanding their international market share, they are simultaneously engaged in intense domestic price wars and managing significant unused production capacity. In 2024, the Chinese market included 129 different electric and plug-in hybrid vehicle brands.

In a broader context of value investing, analysts point to Buffett’s core strategy of seeking high-quality companies with competitive advantages—such as branding or scale—at attractive prices. For example, Coca-Cola HBC is noted as a potential candidate for those following this long-term approach in the UK market.