Hua Xia Shi Bao·2025-09-23 16:36Core Viewpoint - Berkshire Hathaway has completely divested its stake in BYD, marking the end of a significant investment that yielded a 3890% return since 2008 [2][6][9] Group 1: Investment Details - Berkshire Hathaway began reducing its stake in BYD in August 2022, having initially invested $230 million for 225 million shares at a price of HKD 8 per share [3][5] - By the end of 2023, Berkshire had sold approximately 56% of its holdings, reducing its stake to 3.01% [5][6] - The stock price of BYD peaked at HKD 333 per share in June 2022, translating the initial investment into approximately $9.1 billion [5][6] Group 2: Market Reaction - Following the news of Berkshire's divestment, BYD's stock experienced a decline, with A-shares dropping by 1.01% and Hong Kong shares by 3.35% on September 22, 2023 [7] - BYD's total market capitalization is around 960 billion yuan, with a TTM PE ratio of 22.9, slightly above the A-share automotive industry median of 17.63 [7] Group 3: Company Performance - In 2024, BYD reported revenue of 777.1 billion yuan, a year-on-year increase of 29.02%, and a net profit of 40.25 billion yuan, up 34% [8] - The second quarter of 2024 saw a net profit of 6.36 billion yuan, a decline of 29.87% year-on-year, indicating challenges in maintaining profitability [8] - Analysts express concerns over BYD's aggressive pricing strategy to capture market share, which may pressure revenue and profit margins in the short term [8] Group 4: Future Outlook - BYD is expanding its overseas business, with expectations to sell 900,000 to 1 million vehicles abroad by 2025, surpassing the initial target of 800,000 [8] - The competitive landscape in the electric vehicle sector is intensifying, necessitating BYD to seek broader growth opportunities [9]