Warren Buffett's Berkshire Hathaway's Actions on BYD's Shares

TapTechNews June 18th news, Berkshire Hathaway, owned by Warren Buffett, sold 1.3 million shares of BYD's Hong Kong-listed stocks on June 11, cashing out about HK$310.5 million (TapTechNews note: currently about 289 million yuan). After this reduction, Berkshire Hathaway's shareholding ratio in BYD's issued H shares decreased from 7.02% to 6.90%.

This is the 14th publicly disclosed Buffett's reduction of BYD's H shares. The most recent one was on October 25th last year, Berkshire Hathaway sold 820,500 shares at an average price of HK$245.86 per share, and the shareholding ratio decreased from 8.05% to 7.98%.

In September 2008, Berkshire Hathaway subscribed for 225 million H shares of BYD at a price of HK$8 per share. On August 24, 2022, Berkshire Hathaway first reduced its holdings in this stock. At that time, the shareholding ratio was 19.92%, and the stock price had increased by 30 times compared to the subscription price.

Recently, the European Commission announced new tariffs on the import of Chinese electric vehicles (EVs). Under the new tariff regulations, some Chinese automakers will face tariffs as high as 38%, and since BYD cooperated with the European Commission's investigation on the import of Chinese-made electric vehicles, its tariff rate is set at a relatively low 17.4%.

Despite the new tariff barriers, BYD expects that its electric vehicle business will still make considerable profits in the European market.

According to a report from 21 Finance and Economics, regarding the reason for Buffett's reduction, the relevant person said, The company is communicating with the other party. When asked if the company's valuation is too high, the above-mentioned person said, The company is in good operating condition, and sales, profits, etc. remain growing.