Berkshire Hathawayhas reduced its stake in BYD to below 5%, according to a filing with the Hong Kong Stock Exchange on Monday. The stake was cut to 4.94% from 5.06% as of July 16, and had been as high as 7.02% on June 11.
The reduction follows a broader trend of Berkshire selling its shares in Shenzhen-based BYD, which it began doing in August 2022 after the stock price had surged over 20-fold. The original investment, made in 2008, involved a $230 million purchase of approximately 225 million shares, giving Berkshire a 10% stake at that time.
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Hong Kong regulations require disclosure of sales when a shareholder’s stake falls below whole percentage points, with such disclosures ceasing once stakes drop below 5%.
Charlie Munger, Berkshire’s late vice chairman, was instrumental in the initial investment in BYD. Berkshire Hathaway primarily focuses its investments within the United States.
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BYD, founded by Chinese chemist Wang Chuanfu in 1995, was the world’s largest electric vehicle maker last year, surpassing Tesla. However, Tesla has since regained its leading position. In the second quarter, BYD sold 426,039 electric vehicles compared to Tesla’s 443,956.
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