After holding shares for 17 years, the renowned American investor Warren Buffett’s company has completely divested from Chinese electric vehicle giant BYD, marking the end of this highly anticipated cross-border investment.
According to CNBC, Warren Buffett’s company Berkshire Hathaway has sold off all of its H-shares in BYD. A spokesperson for Berkshire Hathaway has confirmed this news.
As of the time of reporting, BYD has not yet responded to Buffett’s divestment.
Since first investing in BYD in 2008, Berkshire Hathaway maintained a stable stake for 14 years (from 2008 to 2022). However, recent continued divestment actions have sparked widespread market attention and speculation.
Reviewing the divestment process, since the initial reduction on August 24, 2022, Buffett has conducted multiple rounds of divestment of BYD shares. Berkshire Hathaway’s stake dropped from a peak of 19.92% to 4.94% in July 2024. Market analysts predicted Buffett might have intentions of a complete sell-off at that time.
From the first divestment to the final disclosed reduction, Berkshire Hathaway has reduced its holdings by approximately 171 million shares in BYD’s Hong Kong-listed stock. The number of shares decreased gradually from 225 million shares to 54.2 million shares, and the stake percentage decreased from 20.04% to 4.94%.
Based on publicly available divestment information, Berkshire Hathaway’s divestment this round had a wide price range, with a high of 277.1 Hong Kong dollars per share and a low of 169.87 Hong Kong dollars per share.
Due to the holdings falling below 5%, according to relevant regulations of the Hong Kong Stock Exchange, Berkshire Hathaway no longer needs to disclose subsequent sales, making it difficult for outsiders to accurately track its divestment progress.
However, “Buffett observers” have found a key clue: in the financial documents of Berkshire Hathaway’s subsidiary holding BYD shares for the first quarter of this year, as of March 31, the book value of the investment had already been recorded as zero, indirectly confirming the complete divestment news.
Regarding the public attention on his divestment of BYD H-shares, Buffett previously stated, “I hope to focus more on the future on the United States.” This statement was interpreted by the market as a significant signal of a shift in his investment strategy.
Recently, Chinese electric vehicle giant BYD has encountered difficulties. Since May 2025, domestic sales have significantly declined, and although overseas markets show growth, it is not enough to offset the weak domestic market.
According to Bloomberg, from May to August this year, BYD’s China delivery volume decreased by around 10% year-on-year, breaking the trend of continuous growth. The August financial report showed the company’s net profit had a quarterly decline for the first time in three years, with a 30% decrease. On that day, the stock price plummeted by 8%, causing a market value evaporation of over 6 billion dollars. In the last four months, BYD’s Hong Kong-listed stock price has dropped by around 30% from its peak, with the total market value shrinking by approximately 45 billion dollars.
Reuters reported BYD has revised its 2025 sales target from the original 5.5 million vehicles to around 4.6 million vehicles. The company has not confirmed this news yet.
Experts point out that the main reason for BYD’s weak sales is due to the Chinese government’s enhanced regulation on price wars.
At the end of 2022, the reduction in subsidies for new energy vehicles in China led to increased vehicle purchase costs. To maintain market share, car manufacturers began reducing prices, triggering a price decline trend at the beginning of 2023. BYD had rapidly expanded with a low-price strategy, but regulatory constraints on price reductions weakened its advantages. Additionally, authorities required car manufacturers to pay suppliers within 60 days, significantly shorter than BYD’s average payment period of 275 days in 2023, putting pressure on its cash flow.
Despite growth in sales in the European and Latin American markets where profits are higher, concerns arise as European and American countries consider restricting imports of Chinese electric vehicles, casting a shadow over its overseas expansion.