NextFin news, On Monday, September 22, 2025, Berkshire Hathaway, the investment firm led by Warren Buffett, completed the sale of its entire stake in BYD, a leading Chinese electric vehicle (EV) manufacturer. This move ends a 17-year investment that saw Berkshire's initial $230 million investment grow more than twentyfold.
Berkshire Hathaway Energy, a subsidiary of Berkshire Hathaway, reported that the value of its BYD holdings dropped to zero by the end of March 2025, confirming the full exit. The firm began gradually reducing its stake starting in August 2022 after BYD's share price surged significantly.
BYD, headquartered in Shenzhen, China, has faced mounting challenges in its domestic market amid an intensifying price war among Chinese EV manufacturers. The company experienced a decline in domestic sales for the fourth consecutive month as of August 2025 and reported its first quarterly profit drop in over three and a half years. This slowdown is attributed to fierce competition from rivals such as Tesla, Nio, and Li Auto, as well as regulatory efforts to curb aggressive price cuts.
Li Yunfei, BYD's general manager of branding and public relations, acknowledged Berkshire Hathaway's exit on his official Weibo account, expressing gratitude for the "investment, help and companionship over the past 17 years" and describing the sale as a routine stock market transaction.
BYD's domestic sales account for approximately 80% of its global shipments. Due to the sales decline, BYD revised its annual sales target downward by up to 16%, now aiming to sell 4.6 million vehicles in 2025. The company is also pursuing international expansion to offset domestic market pressures.
Warren Buffett's initial investment in BYD in 2008 was recommended by Berkshire vice chairman Charlie Munger, who praised BYD's CEO Wang Chuanfu as extraordinary. The investment yielded exceptional returns, with BYD's stock price increasing roughly 3890% during Berkshire's ownership.
The exit highlights the evolving dynamics and challenges in China's competitive EV market, where even top-performing companies like BYD face margin compression and market share pressures amid a fierce price war and economic slowdown.
As of September 22, 2025, BYD's shares fell over 3% in Hong Kong trading following the confirmation of Berkshire Hathaway's complete divestment. Despite near-term challenges, some analysts remain optimistic about BYD's long-term growth prospects.
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