Warren Buffett's Berkshire Hathaway reduces stake in Chinese EV giant BYD

Company News

by Glenn Dyer

For the second time this month, Warren Buffett’s Berkshire Hathaway has cut its holding in Chinese EV and battery giant BYD.

In a filing with the Hong Kong Stock Exchange, Berkshire revealed Tuesday that it had sold down its stake to less than 6% on June 19.

Berkshire cut its stake from 6.18% to 5.99% by selling 2,017,500 BYD shares at an average price of HK$234.57 for HK$470 million (US$60 million).

The June 19 sale came after one on June 11 when Berkshire reduced its BYD position by 1,347,500 shares, from 7.02% to 6.9%.

The average price per share traded at the time was HK$230.46, giving Berkshire about HK$310 million.

Berkshire took its BYD stake on September 29, 2008, when its subsidiary, Berkshire Hathaway Energy, spent US$230 million to buy 225 million shares of BYD at HK$8 per share.

That was a 10% stake, and from that date, Berkshire's holdings in BYD did not change until about two years ago when the sales started.

BYD currently has a market value of more than US$95 billion, so the smaller stake held by Berkshire is still well in the money with a value of around US$5.4 billion.

Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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