Berkshire Hathaway Inc. Warren Buffett’s stake in BYD Co. tram.
Berkshire’s interest in BYD’s Hong Kong-listed shares has now dropped to 18.87% from 19.02%, with the latest stock selling for an average of HK$262.72 per person. , yielding a share value of approximately HK$450.8 million (US$57.5 million). That brings Berkshire’s total shares to 3.05 million, or 1.4% of Buffett’s 225 million shares.
Theories about Buffett’s plan for the Chinese economy tram the company has been pivoting since a 20.49% stake – the same size as Berkshire’s most recently reported BYD position in Hong Kong at the end of June – joined the China Payments and Payments System. focus in July, a sign to investors that a sale may be imminent. That caused BYD stock’s steepest drop in nearly two years.
“We could see some continued selling from Buffett,” said Daisy Li, a fund manager at EFG Asset Management HK Ltd.. “In the short term, investor sentiment around Hong Kong’s BYD stock is unlikely to recover, while domestic listed stocks may be less affected. Over the long term, stock performance will still depend on the company’s fundamentals and the product cycle. “
News of a real first sale on Tuesday afternoon sparked a fresh round of selling, with BYD stock falling nearly 13%, before recouping nearly half of the drop. Shares, which were up 31% last year and an impressive 423% in 2020, are down 14% this year.
A BYD official, in a comment earlier this week to a Chinese newspaper dated 21 Century The Business Herald said there was “no need to explain too much” about the share sale, adding that the company’s operations were still going as normal.
Based on calculate Based on BYD’s interim report and the latest investor filings, Buffett sold about 18 million shares between June 30 and September 1, suggesting more public disclosures are possible. Upcoming. Berkshire, which first bought 225 million shares in September 2008, remains by far the largest shareholder of the EV giant.
The Buffett-BYD drop comes days after BYD reported strong financial earnings for the six months ended June 30, with net income more than tripling from the top forecast finish. However, revenue fell short of estimates.
BYD, regardless of whether Buffett continues to be an advocate or not, is at the helm. Its Chinathe largest electric car manufacturer with a market share of 30% and the third largest in the world the battery producer. The Shenzhen-based company is also selling a record number of cleaner cars.
Bloomberg Intelligence analysts Steven Man and Joanna Chen said in an August 31 research note that BYD’s momentum remains strong despite Buffett’s share sale. They point out that deep vertical integration allows BYD to boost production and secure higher margins from electric vehicles while peers jostle for more cost-effective parts and supplies. cost.
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