Warren Buffett’s Berkshire Hathaway investment firm has sold the last of its shareholding in Chinese car giant BYD.
According to stock filings obtained by news outlet Reuters, Berkshire sold its last tranche of shares in BYD in recent months, after investing in the automaker 17 years ago.
The report claims Berkshire’s original investment of US$230 million (A$349 million at today’s exchange rate) back in 2008 equalled approximately 225 million shares – or roughly 10 per cent of BYD.
Billionaire Buffett and his late business partner Charlie Munger had to defend their decision at the company’s annual meeting in 2009, publicly expressing their admiration and trust in BYD founder Wang Chuanfu.
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Berkshire Hathaway began gradually selling off the shares just three years ago after BYD’s stock price had increased twentyfold.
It’s estimated Berkshire’s investment would have been worth approximately US$4.6 billion (AU$7 billion) by 2022.
However, with BYD’s global dominance in more recent years – reflected in its stock price – some analysts suggest the investment was worth roughly US$10 billion (AU$15.2 billion) to Mr Buffett’s company.
In 2008, five-year-old BYD was the first to introduce a plug-in hybrid vehicle to market: the F3DM.
The F3DM was the plug-in hybrid version of the petrol-powered F3, which had already been on sale for three years.
While BYD is best known for its cars, in 2003, the auto arm was spun out from its parent company – a battery manufacturer, established in 1995.
Despite the good fortune, it seems Mr Buffett has been selling off his major investments in China and Taiwan recently, following a rise in geopolitical tensions in the region.
In a 2023 interview with CNBC, Mr Buffett reiterated his admiration for Wang Chuanfu, but responded to questions about his divestment by saying: “I think that we’ll find things to do with the money that I’ll feel better about.”
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