WEB: Berkshire Hathaway Sells Stake in Hong Kong-Listed BYD
Berkshire Hathaway, the investment company owned by Warren Buffett, has sold 155 million Hong Kong-listed BYD shares. The sale represents about 2.2% of BYD's total shares outstanding.
Berkshire Hathaway has been a major investor in BYD for many years. As of December 31, 2022, Berkshire Hathaway held an 82% stake in BYD and was the company's eighth-largest shareholder.
The sale of BYD shares is part of Berkshire Hathaway's broader strategy of reducing its exposure to the Chinese market. In recent years, Berkshire Hathaway has sold off stakes in several other Chinese companies, including PetroChina and China Petroleum & Chemical Corp.
BYD is a Chinese automaker that produces electric vehicles, plug-in hybrids, and traditional gasoline-powered vehicles. The company is one of the largest automakers in China and has been growing rapidly in recent years.
The sale of BYD shares by Berkshire Hathaway is a significant event. It signals that Berkshire Hathaway is becoming less optimistic about the Chinese market and is reducing its exposure to the country. The sale also comes at a time when BYD is facing increasing competition from other Chinese automakers, such as Geely and Great Wall Motors.
It remains to be seen how the sale of BYD shares will impact the company's long-term prospects. However, the sale is a clear sign that Berkshire Hathaway is becoming less bullish on the Chinese market.
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