Berkshire Hathaway has reduced its stake in BYD to less than 5%

Warren Buffett's $Berkshire Hathaway(BRK.B)$ has reduced its stake in $BYD Co., Ltd.(BYDDY)$ to less than 5%.

The Chinese electric vehicle manufacturer's sales volume has increased by 28%, but domestic price competition poses risks. $BYD Co., Ltd.(BYDDY)$ 's new car sales from January to June increased by 28% year-on-year, reaching 1.61 million units.

Guangzhou - According to a document submitted to the Hong Kong Stock Exchange on Monday, Warren Buffett-led Berkshire Hathaway has sold more shares of the Chinese electric vehicle giant BYD.

The American investment company has gradually reduced its holdings from about 20% to less than 5%. Berkshire sold 1,395,500 shares, which is equivalent to about 340 million Hong Kong dollars (43.6 million US dollars) based on the average stock price.

Its stake in BYD decreased by 0.1 percentage points to 4.94%. Once the shareholder's holding falls below 5%, the Hong Kong Exchange will no longer require the disclosure of stock transactions.

Berkshire acquired BYD shares in 2008, enhancing the electric vehicle manufacturer's popularity among investors.

When Berkshire began to sell its shares in 2022, BYD's stock price plummeted. BYD's recent profitability is solid. Net profit for the first three months totaled 4.5 billion yuan (619 million US dollars), an increase of 11% year-on-year.

New car sales from January to June increased by 28% year-on-year, reaching 1.61 million units, with overseas sales also on the rise.

However, due to fierce price competition in the Chinese market, some predict that BYD's sales growth will slow down.

$BYD Co., Ltd.(BYDDY)$ 's stock price fell sharply on the day.

Mr. Buffett is really patient, announcing to the world in 2022 before reducing BYD, and it took more than two years to gradually reduce his holdings. Charlie Munger was also like this in his lifetime.