Berkshire Hathaway Completes Exit from BYD Stake
Berkshire Hathaway has officially sold off its remaining shares in Chinese electric vehicle manufacturer BYD, concluding a 17-year investment that began in 2008. The gradual divestment initiated in August 2022 culminated by June 2025, when Berkshire’s stake fell below 5%, confirming the company’s exit. BYD publicly acknowledged Warren Buffett and Charlie Munger’s support in a statement on the Chinese social media platform Weibo. Li Yunfei, BYD’s public relations executive, emphasized that stock investment inherently involves buying and selling, describing the divestment as “completely normal.” The message expressed gratitude for Buffett and Munger’s recognition and companionship over nearly two decades.“Investing in stocks involves both buying and selling, which is completely normal…We are grateful for Charlie Munger’s and Warren Buffett’s recognition of BYD, as well as for the investment, support, and companionship over the past 17 years…Praise to all long-term believers!”
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BYD Executives Affirm Continued Respect for Buffett’s Investment Philosophy
BYD Executive Vice President Stella Li reiterated on CNBC Europe’s Access Middle East that Buffett and Munger maintained strong admiration for BYD and its management team. She noted that their decision to sell shares aligns with Berkshire’s investor nature, where buying and selling are routine parts of portfolio management. Additionally, Alfredo Altavilla, a special adviser to BYD, highlighted Buffett’s exceptional return, noting the investor achieved approximately 20 times his initial capital. Altavilla characterized Berkshire’s monetization of its position as emblematic of its core business strategy — acquiring, holding, and divesting assets profitably.Market Reacts to Berkshire’s BYD Exit
Despite BYD’s positive framing of Berkshire’s exit, investor sentiment in Hong Kong was less sanguine. BYD shares declined more than 6% in response to the divestment news, reflecting concerns about the departure of a high-profile long-term investor.Berkshire Increases Holdings in Japanese Trading Houses
While winding down its Chinese investment, Berkshire Hathaway has simultaneously expanded its portfolio in Japan. This week, Mitsui announced Berkshire now holds 10% or more of its voting rights following additional share acquisitions, although the exact stake remains undisclosed. Previously, Berkshire’s reported stake in Mitsui was 9.8% as of March 17, 2025, representing approximately 285 million shares valued near $7.3 billion. Berkshire also increased its stake in Mitsubishi from 9.7% to 10.2%, as per recent regulatory filings. Speculation remains about Berkshire’s other Japanese holdings, including Itochu, Marubeni, and Sumitomo, with expectations that their stakes may have similarly surpassed the 10% threshold.Buffett’s Investment Strategy: Dynamic Portfolio Management
Berkshire Hathaway’s recent moves underscore the firm’s pragmatic approach to portfolio management. Long-term investments are balanced with timely divestments and strategic acquisitions to optimize returns and position the company for future growth. The BYD divestment, while marking the end of a successful investment chapter, aligns with Berkshire’s broader philosophy of capital allocation, where profits are realized to redeploy resources efficiently. Simultaneously, Berkshire’s deepening stakes in Japanese trading houses reflect an ongoing commitment to diversified, global investments, particularly in stable, cash-generative companies.FinOracleAI — Market View
Berkshire Hathaway’s exit from BYD and increased Japanese holdings illustrate a strategic repositioning in response to evolving market dynamics and valuation opportunities.- Opportunities: Redeployment of capital from BYD into Japanese trading houses may yield stable dividends and exposure to diverse sectors.
- Risks: BYD’s share price volatility post-divestment could reflect investor uncertainty about the company’s future without Berkshire’s support.
- Strategic Insight: Berkshire’s moves reinforce its disciplined investment cycle, balancing long-term conviction with opportunistic portfolio adjustments.
