{"id":36847,"date":"2022-11-25T09:03:42","date_gmt":"2022-11-25T14:03:42","guid":{"rendered":"https:\/\/autosector.com\/?p=36847"},"modified":"2022-11-25T09:03:42","modified_gmt":"2022-11-25T14:03:42","slug":"warren-buffett-s-berkshire-hathaway-has-slashed-its-byd-stake-by-22-in-4-months","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=36847","title":{"rendered":"Warren Buffett&#8217;s Berkshire Hathaway has slashed its BYD stake by 22% in 4 months &#8211; Autoblog"},"content":{"rendered":"<figure><figcaption>\n   Warren Buffett.<br \/>\n  <span class=\"copyright\">AP<\/span><br \/>\n <\/figcaption><\/figure>\n<ul class=\"summary-list\">\n<li>Warren Buffett&#8217;s Berkshire Hathaway has sold about $1.3 billion of BYD stock in recent months.<\/li>\n<li>Berkshire spent about $49 million on the shares, meaning it has realized an estimated 25-fold return.<\/li>\n<li>Berkshire has slashed its stake in the Chinese electric-vehicle company by 22% so far.<\/li>\n<\/ul>\n<p>Warren Buffett&#8217;s <a href=\"https:\/\/markets.businessinsider.com\/stocks\/brk-b-stock?utm_medium=referral&amp;utm_source=yahoo.com\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:0;\">Berkshire Hathaway<\/a> has cashed in about $1.3 billion of BYD stock over the past four months, scoring a roughly 25-fold profit on the shares it sold, a Markets Insider analysis has found.<\/p>\n<p>The legendary investor&#8217;s company <a href=\"https:\/\/markets.businessinsider.com\/news\/stocks\/warren-buffett-berkshire-hathaway-gain-byd-electric-vehicles-investment-2021-1-1029995920?miRedirects=1&amp;utm_medium=ingest&amp;utm_medium=referral&amp;utm_source=markets&amp;utm_source=yahoo.com\" rel=\"\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:1;\">paid $232 million<\/a> for 225 million shares of the Chinese electric-vehicle maker in 2008. After\u00a0<a href=\"https:\/\/markets.businessinsider.com\/news\/stocks\/byd-stock-price-warren-buffett-berkshire-hathaway-china-electric-cars-2022-7?utm_medium=ingest&amp;utm_medium=referral&amp;utm_source=markets&amp;utm_source=yahoo.com\" rel=\"\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:2;\">listing<\/a> the entire position on the Hong Kong Stock Exchange&#8217;s clearing system on July 12, it has now slashed it by 22% to 176 million shares as of November 17, <a href=\"https:\/\/di.hkex.com.hk\/di\/NSNoticePersonList.aspx?g_lang=en&amp;lang=EN&amp;pn=berkshire+hathaway+energy&amp;sa1=pl&amp;sa2=np&amp;sced=01%2F09%2F2022&amp;scpid1=105122&amp;scpid2=2508&amp;scpid3=2&amp;scsd=01%2F09%2F2021&amp;src=MAIN\" rel=\"nofollow\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:3;\">exchange filings show<\/a>.<\/p>\n<p>Berkshire only paid around $1 a share when it first invested in BYD, and has now sold 49.4 million shares for around $26 each. That figure is the weighted-average selling price for about 30% of the total shares sold \u2014 all that&#8217;s included in the filing \u2014 meaning it&#8217;s only a rough estimate.<\/p>\n<p>Still, if Berkshire spent $49 million on shares it has now sold for nearly $1.3 billion, it has realized a $1.2 billion or 25-fold profit.<\/p>\n<p>BYD investors have balked at Berkshire&#8217;s disposals, and the prospect of Buffett and his team dumping more shares or eliminating their position entirely. They have sent the EV company&#8217;s stock price down 43% since July 11, the day before Berkshire&#8217;s shares appeared in the clearing system.<\/p>\n<p>Berkshire&#8217;s share sales, coupled with the sharp drop in BYD stock, mean the conglomerate&#8217;s remaining stake is worth about $3.9 billion on paper \u2014 less than half its peak value of $8.8 billion in late June.<\/p>\n<p>Hong Kong&#8217;s stock-exchange rules only require Berkshire to disclose transactions that alter its percentage stake by a whole number. Therefore, Berkshire can sell another 11 million shares before its ownership of the automaker&#8217;s Hong Kong-listed stock falls below 15%, and it has to update the market.<\/p>\n<p>Berkshire&#8217;s decision to slash its BYD stake is somewhat surprising, as it&#8217;s been on a historic buying spree this year. It bought a record $49 billion of stocks on a net basis in the first three quarters of this year, and recently <a href=\"https:\/\/markets.businessinsider.com\/news\/stocks\/warren-buffett-berkshire-hathaway-buys-japan-stocks-portfolio-spending-spree-2022-11?utm_medium=referral&amp;utm_source=yahoo.com\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:4;\">bolstered<\/a> its stakes in <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/tag\/japan\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:5;\">Japan&#8217;s<\/a> five biggest trading houses from 5% to over 6%.<\/p>\n<p><em><strong>Read more:<\/strong> <a href=\"https:\/\/www.businessinsider.com\/where-to-invest-2023-stock-market-find-returns-goldman-2023-2022-11?utm_medium=referral&amp;utm_source=yahoo.com\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:6;\">Goldman Sachs says the S&amp;P 500 will remain flat through 2023. Here&#8217;s their 5-step playbook for finding returns \u2014 and avoiding crippling losses \u2014 next year.<\/a><\/em><\/p>\n<div class=\"read-original\">\n  Read the original article on<br \/>\n <a href=\"https:\/\/www.businessinsider.com\/warren-buffett-berkshire-hathaway-stock-sales-byd-china-ev-tesla-2022-11\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:7;\">Business Insider<\/a>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Warren Buffett. AP Warren Buffett&#8217;s Berkshire Hathaway has sold about $1.3 billion of BYD stock in recent months. Berkshire spent about $49 million on the shares, meaning it has realized an estimated 25-fold return. Berkshire has slashed its stake in the Chinese electric-vehicle company by 22% so far. Warren Buffett&#8217;s Berkshire Hathaway has cashed in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[2],"tags":[],"class_list":["post-36847","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/36847","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=36847"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/36847\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/8313"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=36847"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=36847"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=36847"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}