Warren Buffett’s investment firm sells remaining shares as Chinese automaker faces growth challenges and intensifying competition.
Berkshire Hathaway has completed its exit from BYD after selling its remaining shareholding in the Chinese electric vehicle and battery manufacturer, ending a 14-year investment that generated substantial returns for Warren Buffett’s conglomerate.
The final share disposal occurred through Hong Kong Stock Exchange transactions, with Berkshire reducing its stake from a peak of around ten percent to zero as of March this year.
The exit comes as BYD faces slowing growth momentum in China’s increasingly competitive electric vehicle market, with the company reporting softer sales figures in recent quarters compared to its rapid expansion period.
Berkshire’s withdrawal marks the end of one of the most successful foreign investments in China’s new energy vehicle sector, with the firm having initially invested approximately $230 million in 2008.
The divestment process began in earnest during 2022 when Berkshire started reducing its BYD holdings through systematic share sales on the Hong Kong exchange.
According to regulatory filings, the investment firm sold shares in multiple tranches over recent months, with the final disposals completing the full exit from what had been one of Berkshire’s most profitable international investments.
BYD’s share price has experienced volatility throughout the last 12 months as investors weigh the company’s growth prospects against intensifying competition from domestic rivals but remains up almost 40 percent over that period and almost 238 percent over the past five years.
In fact over the 14-year investment, the value rose more than twentyfold to a maximum value of more than $7 billion from that initial $230 million investment.
At the time, the investment in BYD aligned with Warren Buffett’s long-term value investing philosophy, recognising BYD’s early positioning in electric vehicle and battery technology before these sectors achieved mainstream adoption.
The timing of Berkshire’s exit suggests strategic portfolio rebalancing rather than fundamental concerns about BYD’s business model, with BYD remaining Buffett’s only investment in a Chinese brand despite a sprawling portfolio.
Investment analysts note that Berkshire typically maintains positions for extended periods, making the complete withdrawal notable given the firm’s historical approach to long-term holdings.
BYD’s general manager of branding and public relations, Li Yunfei, thanked Berkshire for its “investment, help and companionship over the past 17 years” in a post on his official Weibo account, describing the divestment as “normal”.
BYD continues to rank as the automotive sales champion in China after claiming the title from Volkswagen last year, and remains far and away the most successful new energy vehicle maker in China despite rivals like Geely closing the gap in recent months.
Despite enormous profits, BYD has faced further pressure this year with the requirement that manufacturers reduce their payment time to suppliers to a maximum of 60 days, with some reports suggesting BYD’s payments were taking almost double that time and being paid via a surreptitious credit system, accusations BYD deny.
The company’s battery division remains a significant revenue contributor, supplying both internal vehicle production and external automotive manufacturers, while BYD is also known to be a prominent producer of a wide range of products, including smartphone chassis for numerous household names and even hygiene masks.
The broader Chinese electric vehicle market has experienced consolidation pressures as government subsidies phase out and consumer adoption patterns mature, meaning established manufacturers like BYD must now compete primarily on product merit and pricing rather than policy support, creating more challenging operating conditions.
