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Buffett’s Berkshire Hathaway cuts stake in world’s No 1 EV maker BYD again, selling 1.96 million shares for US$58.9 million
- The share sale on May 2 has reduced Berkshire’s holding in Shenzhen-based BYD to 9.87 per cent from 10.05 per cent
- Berkshire has disposed of over 110 million shares in BYD since August 24, according to public disclosures on Hong Kong stock exchange
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Berkshire Hathaway, the investment firm controlled by US billionaire Warren Buffett, has continued to trim its stake in BYD, selling 1.96 million shares in the Chinese electric-vehicle (EV) maker, in at least the 11th reduction since August.
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The shares were sold for HK$462.1 million (US$58.9 million) on May 2 at an average price of HK$235.64 per share, according to exchange data.
After the divestment, the Omaha, Nebraska-based investment firm’s interest in BYD dropped to 9.87 per cent from 10.05 per cent. This compared with 19.92 per cent when Berkshire began trimming its exposure in August.
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BYD’s shares rose 2.1 per cent to HK$240 on Monday in Hong Kong, while its Shenzhen-listed shares gained 1.6 per cent to 254.03 yuan. Despite the gain, its Hong Kong-traded stock has slumped 27.6 per cent from the record close of HK$331.40 on June 28 last year. The stock had surged sixfold over the preceding two years.
Berkshire had a starting position of 225 million shares in BYD at HK$8 a piece, a stake built from scratch in the aftermath of the 2008 global financial crisis, earning an around 30-fold return over a 14-year holding period.
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