Warren Buffett’s Berkshire Hathaway has officially closed the book on one of its most celebrated investments, fully exiting its stake in Chinese electric vehicle giant BYD as revealed in a recent filing. The move, marking the end of a 17-year journey that began in 2008, saw the initial $230 million outlay transform into billions in gains before gradual sales starting in 2022. For investors and market observers searching Berkshire Hathaway exits BYD 2025, Warren Buffett BYD investment end, or impact on Chinese EV stocks, this divestment underscores Buffett’s value-driven philosophy amid rising U.S.-China tensions and EV sector volatility.
With BYD’s shares dipping 1.5% in Hong Kong following the news, the exit—first flagged by CNBC—prompts reflection on Charlie Munger’s pivotal role in the deal and Berkshire’s pivot away from emerging market bets. Let’s unpack the history, the sell-off, and what it signals for global markets.
The Origin Story: From $230M Bet to 20-Fold Windfall
Berkshire’s BYD saga kicked off in September 2008, when Buffett, at the urging of longtime partner Charlie Munger, shelled out $230 million for approximately 225 million H-shares—equating to a 10% stake in the then-fledgling battery maker. Munger famously dubbed BYD founder Wang Chuanfu a “combination of Thomas Edison and Jack Welch,” highlighting the company’s innovative edge in lithium-ion tech for EVs and renewables.
The investment rode the EV boom: BYD shares surged over 20-fold from 2008 to 2022, peaking amid global green energy hype. By August 2022, the stake was worth around $9 billion at its height, delivering Berkshire an extraordinary return on capital.
Yet, true to Buffett’s “buy and hold forever” mantra—with exceptions for overvaluation—Berkshire began trimming in mid-2022 as geopolitical risks and competition intensified.
| Milestone | Date | Stake Details | Approximate Value |
|---|---|---|---|
| Initial Investment | Sept 2008 | 225M shares (10% stake) | $230M |
| Peak Value | Aug 2022 | ~8% stake | ~$9B |
| Below 5% Threshold | June 2024 | 54M shares | $415M (end-2024) |
| Full Exit | By March 2025 | 0 shares | $0 |
The Gradual Sell-Off: From Trims to Total Exit
Berkshire’s divestment was methodical, not abrupt:
- 2022 Onward: Started selling in August 2022 at an average HK$277 ($35.7) per share, offloading chunks amid U.S.-China trade frictions and BYD’s domestic price wars.
- June 2024: Stake dipped below 5% (54 million shares), freeing Berkshire from Hong Kong disclosure rules and valued at $415 million by year-end.
- Q1 2025: Berkshire Hathaway Energy’s filing lists the investment at zero as of March 31, 2025, confirming the complete unwind.
A Berkshire spokesperson verified the full sale, but the company offered no further commentary. The process realized billions in profits, though exact figures remain undisclosed beyond the initial outlay’s multiplier.
BYD’s PR head, Li Yunfei, graciously acknowledged the partnership on Weibo: “Thank you to Munger and Buffett for recognizing BYD! Buying and selling stocks is a normal part of investing. Thank you for your investment, help, and companionship over the past 17 years.”
Why Now? Geopolitics, Valuation, and Post-Munger Realities
Several factors likely influenced the exit:
- Geopolitical Headwinds: Escalating U.S. tariffs (up to 100% on Chinese EVs under Trump) and export curbs made BYD’s growth riskier for American investors.
- Market Dynamics: BYD faces a sales slowdown—domestic volumes down for four months straight in 2025, with revised targets at 4.6-4.8 million units (vs. original 5.5 million), per Deutsche Bank and Morningstar. Price cuts amid deflationary pressures add margin strain.
- Portfolio Reallocation: Buffett cited “global uncertainties” in 2023 when trimming similar stakes (e.g., Taiwan Semiconductor). Post-Munger’s 2023 passing, Berkshire has leaned conservative, favoring U.S. and Japanese holdings like Apple and Itochu.
- Overhang Lifted: Retail sentiment on platforms like StockTwits turned bullish, with one user noting, “We finally have the overhang of Berkshire selling over with!”
BYD’s U.S.-listed shares rose 30% YTD 2025 to $14.56, but Hong Kong trading saw a 1.5% dip to 107.44 yuan on the news.
Implications: A Signal for EV Investors and China Bets?
Buffett’s BYD exit reverberates beyond one stock:
- For BYD: Loses a marquee endorser, but its $137 billion Shenzhen market cap and global push (e.g., Europe, LATAM) provide buffers. Founder Wang Chuanfu’s $24.4 billion fortune underscores resilience.
- Broader EV Sector: Amid Tesla’s dominance and subsidies waning, it highlights risks in Chinese autos—U.S. imports could face steeper barriers.
- Berkshire’s Strategy: Reinforces focus on “fortress” assets; top holdings now emphasize U.S. tech and Japanese trading houses.
- Investor Lesson: Echoes Buffett’s wisdom: Even home runs get sold when valuations stretch or risks mount.
As BYD navigates 2025’s headwinds, the “Buffett-backed” halo fades, but its innovation legacy endures.
Conclusion: Farewell to a Buffett Masterstroke
Berkshire’s full exit from BYD closes a chapter on one of investing’s great success stories—a $230 million seed that bloomed into billions, thanks to Munger’s vision. In a world of trade wars and EV shakeouts, it reminds us: Even legends like Buffett know when to cash out. For those eyeing BYD stock forecast 2025 or Berkshire portfolio shifts, this could free up capital for fresh bets. Will BYD thrive sans Buffett, or face steeper climbs? The road ahead is electric.
