Berkshire Hathaway sells entire BYD stake after 4,000% gain

Warren Buffett's Berkshire Hathaway has completely divested its stake in Chinese electric vehicle manufacturer BYD, ending a 17-year investment that generated returns of approximately 4,000% before its gradual exit.

According to a filing from Berkshire Hathaway Energy, the subsidiary that held the shares, the investment's value stood at zero as of March 31, 2025, down from $415 million at the end of 2024. A Berkshire spokesperson confirmed to CNBC that all BYD shares had been sold.

The investment was originally championed by Berkshire's late Vice Chairman Charlie Munger, who purchased 225 million shares for $230 million in 2008. At the 2009 Berkshire annual meeting, Munger famously defended the unusual bet on the Chinese startup, calling BYD and its founder Wang Chuanfu "a damn miracle".

"This is not some unproven, highly speculative activity," Munger told shareholders. "What it is, is a damn miracle". He praised Wang Chuanfu for building BYD from nothing into the world's leading manufacturer of rechargeable lithium batteries and then successfully entering the automotive industry despite having "nearly zero experience in automobiles".

BYD's Struggles Amid China's EV Price War

The exit comes as BYD faces challenges in its home market. The company reported its first quarterly profit decline in over three years, with net profit falling 30% to 6.36 billion yuan ($891 million) in the second quarter. The drop was attributed to China's brutal EV price war, which has forced even market leaders to slash prices and accept lower margins.

BYD has cut its annual sales target by 16% to 4.6 million vehicles, down from an earlier goal of 5.5 million units. The company's domestic sales, which account for nearly 80% of its global deliveries, have declined for four consecutive months through August 2025.

Li Yunfei, BYD's general manager of brand and public relations, responded graciously to Berkshire's exit on Weibo, calling it "a normal part of investing" and thanking "Munger and Buffett for recognizing BYD".

Market Impact

BYD's Hong Kong-listed shares fell 3.4% on Monday following the news, while its Shenzhen-traded stock dropped 1.5%. The stock reaction reflects the end of an era for what became one of Berkshire's most profitable investments, with BYD's stock price surging nearly 3,900% during Berkshire's ownership period.

Despite domestic challenges, BYD has expanded internationally, with strong growth in Europe where sales jumped 225% as Tesla declined 40% in the region. The company has also captured 17.8% of the global battery market share.