At Extreme Investor Network, we strive to bring you the most valuable insights into the world of finance. Today, we are excited to share some fascinating information about Warren Buffett’s Berkshire Hathaway and their recent movements in the electric vehicle market.
Berkshire Hathaway, under the leadership of Warren Buffett and the late Charlie Munger, made a strategic investment in China’s leading electric vehicle maker, BYD, back in 2008. This investment has proven to be highly lucrative as the EV market has experienced explosive growth in recent years.
Recently, Berkshire Hathaway decided to trim its massive stake in BYD by selling 1.3 million Hong Kong-listed shares for $39.8 million. This move reduced Berkshire’s holding in BYD from 7% to 6.9%. It is important to note that Berkshire had already offloaded half of its stake in BYD through sales in 2022 and 2023, taking advantage of the significant growth in BYD’s stock price.
BYD, founded by Wang Chuanfu, started as a manufacturer of batteries for mobile phones before transitioning to auto manufacturing in 2003. Today, BYD is not only the top car brand in China but also a major player in the EV battery industry. In the fourth quarter of 2023, BYD surpassed Tesla to become the world’s top EV maker, a testament to its rapid growth and innovation.
Warren Buffett once credited Charlie Munger for the successful investment in BYD, stating that Munger deserves 100% of the credit for identifying the potential in the company. Munger was introduced to BYD by his friend Li Lu, the founder of Himalaya Capital.
As avid investors, it is essential to stay informed about the latest developments in the financial world. Keep an eye on Berkshire Hathaway’s strategic moves in the EV market and learn from the investment wisdom of Warren Buffett and Charlie Munger. Stay tuned for more exclusive insights and analysis from Extreme Investor Network.