BYD Bids Warren Buffett's Berkshire a Fond Farewell

Just hours after reports surfaced that Berkshire Hathaway had completely exited its stake in BYD earlier this year, the Chinese electric vehicle manufacturer confirmed the move and expressed gratitude toward Warren Buffett and the late Charlie Munger for their long-term support.

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On Chinese social platform Weibo, BYD’s public relations chief Li Yunfei acknowledged Berkshire’s full divestment. He explained, via a translated post:

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“Back in August 2022, Berkshire began gradually reducing its holdings of BYD shares acquired in 2008. By last June, its stake had dropped below 5%. Buying and selling stocks is a normal part of investing. We sincerely appreciate the recognition from Warren Buffett and Charlie Munger, as well as their support and companionship over the past 17 years. Respect to all long-term believers!”

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Echoing this sentiment, BYD Executive Vice President Stella Li spoke on CNBC Europe’s Access Middle East, clarifying that Buffett and Munger “loved BYD and its leadership team.” She added, “But they are investors. Naturally, buying and selling is their business, so this decision wasn’t because they lost faith in us.”

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A Reuters interview with BYD adviser Alfredo Altavilla underscored the profitability of Berkshire’s bet. He said Buffett “generated about 20 times the capital he invested. He was absolutely right to do what he did. That’s exactly what Berkshire does. It buys, earns, and eventually sells.”

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While BYD leadership took a gracious stance, global investors reacted more sharply. The company’s shares tumbled over 6% in Hong Kong this week, extending year-to-date losses past 28%. A steep decline in early June added to the pressure.

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The pullback highlights a shift in BYD’s growth trajectory. Management recently cut its 2025 sales target by 16%, introduced price cuts through year-end, and scaled back production. In August, the automaker reported its first quarterly profit decline in more than three years a signal that the momentum of its rapid expansion is beginning to cool.

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Even as Berkshire winds down its high-profile Chinese investment, the firm continues to ramp up its exposure in Japan’s trading houses conglomerates with wide-ranging global portfolios.

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This week, Mitsui announced in a statement that Berkshire had informed the company it now owns 10% or more of its voting rights following an additional share purchase. However, the exact number of shares wasn’t disclosed.

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In March, Berkshire reported holding a 9.8% position in Mitsui, totaling 285,401,400 shares. At today’s market close, that stake would be worth about $7.3 billion.

Last month, a Mitsui executive told Reuters that Berkshire had increased its position but declined to specify by how much. Around the same time, Mitsubishi revealed in a regulatory filing that Berkshire had raised its stake to 10.2% from 9.7%.

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So far, no formal updates have been released on Berkshire’s holdings in the other three Japanese trading giants Itochu, Marubeni, and Sumitomo. But given recent patterns, it would not be surprising if those positions also crossed the 10% threshold.

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Berkshire’s decision to exit BYD while doubling down on Japanese trading houses reflects its long-standing investment philosophy backing companies it admires, taking profits when appropriate, and redeploying capital where it sees value.

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Buffett and Munger’s initial BYD bet in 2008 has become legendary, delivering massive returns as the automaker rose to dominate China’s EV sector. Yet the exit comes as BYD faces growing competition and slowing growth, raising questions about its near-term trajectory.

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In contrast, Japanese trading companies offer diversified exposure across industries from energy to commodities to logistics and have historically traded at discounted valuations relative to their global peers. Buffett has praised their strong management and consistent cash flows, signaling confidence in their long-term outlook.

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For investors, these moves are a reminder that even the most iconic names in value investing remain active in reshaping portfolios to reflect evolving opportunities. Berkshire may be stepping back from China’s EV story, but it is leaning further into Japan’s diversified industrial powerhouses a strategic pivot that could shape the next chapter of its global investments.

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