Berkshire Hathaway sold $86.3 million worth of shares in China’s BYD on June 26, 2023. The sale involved 2.53 million Hong Kong-listed shares, reducing Berkshire’s holdings in BYD’s issued H-shares from 9.15% to 8.86%.
In recent times, Berkshire Hathaway has been selling BYD shares. Since August 2022, they have sold a total of 12.2 million shares valued at over $300 million.
The reasons behind these sales are not entirely clear. Speculations suggest that Berkshire may be capitalizing on profits from its investment in BYD, which has been a strong performer. Another possibility is that Berkshire is concerned about the Chinese government’s recent actions targeting the tech sector.
The sales have caught the attention of investors. BYD is highly regarded as one of the world’s most successful electric vehicle companies, and its shares continue to trade at a premium compared to the overall market. Some investors question why Berkshire would sell shares in a company they believe is still undervalued.
Only time will reveal Berkshire’s long-term plans for its investment in BYD. However, the recent sales have raised doubts about the company’s commitment to the Chinese EV manufacturer.
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