Did Buffett and Munger See BYD’s One Problem?
The billionaire investors have shown a knack for getting in at the right moment. If confirmed, this move may show they’re also experts at bowing out.
Another resource shortage.
Source: Bloomberg
After years of sitting on an over 20% stake in China’s BYD Co, Warren Buffett’s Berkshire Hathaway may be mulling an exit. A similarly-sized position showed up in Hong Kong’s clearing system last week, fueling worries that the Sage of Omaha was over the hot Chinese electric vehicle and battery maker.
It sure seemed like odd timing: BYD has risen to the top of global electric vehicle maker rankings. It’s closing in on Tesla Inc. while forging a clear path ahead on batteries and, somehow, circumventing severe supply chain snarls. The firm has done all the right things. On Thursday, the Hong Kong-listed company said it expects preliminary net income in the first half to jump 207%.