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Historical Exit of Long-Term Investor Occurs Amid Intensification of Competition in Chinese Electric Vehicle Market, Pressuring BYD Stocks and Reigniting Debates on Margins, Global Leadership and International Expansion Strategies.
Berkshire Hathaway, the holding through which Warren Buffett manages his investments, has completely exited its stake in BYD, China’s largest automaker and one of the leading global manufacturers of electric and hybrid vehicles.
According to a report published by Forbes on Tuesday (23), this information was confirmed from a corporate document indicating zero value of the position as of March 31, 2025, marking the end of an investment that began in 2008.
The move had an immediate impact on the market.
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BYD’s shares fell between 3% and 3.6% in the trading session where the exit garnered attention on the Hong Kong Stock Exchange, ranking among the worst performers of the day, according to Forbes.
Throughout the session, however, the stock reduced some of its losses and closed away from the lows.
The total sale occurs at a time when investors are paying more attention to the electric vehicle sector in China, marked by intense competition and price cuts.
Market analysts have pointed out that this environment pressures profit margins and increases the sensitivity of the stocks to news involving major shareholders.
Official Document Confirmed Zero Position of Berkshire
The indication that Berkshire no longer held shares of BYD appeared in a report from Berkshire Hathaway Energy, the group’s unit that held the shares.
According to Forbes, the document listed the stake with a zero value on the reference date.
Subsequently, international media outlets reported that representatives of the holding confirmed the termination of the position.
Since 2022, Berkshire had been gradually reducing its stake in the Chinese automaker, a move that had been closely monitored by the market.
Still, the complete closure of the position, after more than 15 years, drew attention as BYD remains a leader in volume in the Chinese electrified vehicle market and expands its international presence.
Another factor that contributed to the surprise was the level of disclosure.
In 2024, Berkshire’s stake fell below 5% of the shares traded in Hong Kong, a threshold that ends the obligation to report new sales on an ongoing basis to the local stock exchange.
As a result, part of the subsequent operations was no longer disclosed in real time.
Bet Initiated in 2008 and Significant Return Over the Years
Berkshire’s entrance into BYD’s capital occurred in September 2008, when the holding acquired 225 million shares, equivalent to about 9.9% of the company at the time.
The initial investment was estimated at approximately US$ 230 million, according to a survey cited by Forbes.
Over the following years, BYD underwent an operational transformation.
The company expanded its operations in the automotive sector, consolidated a integrated battery and vehicle production chain, and became a benchmark in the Chinese market for electric and hybrid vehicles.
Market surveys indicate that Berkshire’s investment multiplied several times over the period, although exact numbers vary depending on the methodology used.
The decision to invest in the Chinese company was publicly defended over the years by Charlie Munger, then vice chairman of Berkshire.
On different occasions, he highlighted BYD’s execution capability and industrial scale.
BYD’s Reaction to Exit and Official Positioning
After the announcement of the total sale, BYD issued a statement published on the social network Weibo.
Li Yunfei, general director of branding and public relations for the company, stated that buying and selling operations are part of the normal dynamics of the stock market.
“In stock investments, buying and selling is a normal practice. We are grateful to Munger and Buffett for recognizing BYD and for their 17 years of investment, support, and partnership.”
The statement aimed to contextualize the exit as a financial decision by Berkshire, without directly associating it with the operational evaluation of the automaker.
Still, analysts note that moves involving large investors are often carefully monitored, especially in sectors under competitive pressure.
Price War Pressures Margins in Electric Sector
The electric vehicle sector in China is going through a phase of intense competition, with successive price cuts to maintain sales volume.
Local manufacturers are competing for space in a market that is growing at a slower pace than in previous years.
This scenario directly impacts the profitability of companies.
In this context, BYD reported a 29.9% drop in net profit in the second quarter of 2025, to 6.4 billion yuan, according to data reported by the company itself and echoed by Forbes.
It was the first quarterly decline after more than three years of growth.
According to analyses published by specialized media, the retraction reflected price adjustments, operational costs, and changes in the pace of expansion in a more competitive environment.
International Expansion Remains on Strategic Radar
Alongside the challenges in the domestic market, BYD continues to plan for expansion outside China.
The company raised billions in Hong Kong to finance international projects and strengthen its global operations, as highlighted by Forbes in recent reports.
Brazil is among the closely monitored markets.
The automaker is advancing with plans for a factory in Camaçari, Bahia, although the schedule has undergone revisions.
Information released by authorities and the company itself indicates that production is set to start gradually, with expansion planned for the following years.
Even with the external focus, analysts emphasize that BYD’s performance will remain strongly tied to conditions in the Chinese market.
The country continues to account for the majority of sales and financial results of the company.
With Berkshire Hathaway’s definitive exit from the shareholder structure, investors and analysts are watching how BYD plans to maintain its leadership in a highly competitive environment with pressured margins, balancing growth, profitability, and global expansion.
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