BYD bids Warren Buffett's Berkshire an unfazed farewell: Selling is 'normal'

Core Viewpoint - Berkshire Hathaway has sold its remaining stake in BYD, a Chinese electric vehicle manufacturer, after holding shares since 2008, which has led to a decline in BYD's stock price by over 6% in Hong Kong this week [1][4]. Group 1: BYD's Response and Market Reaction - BYD confirmed Berkshire's exit and expressed gratitude towards Warren Buffett and Charlie Munger for their long-term support, noting that Berkshire's gradual reduction of its stake began in August 2022, falling below 5% by June [2][3]. - BYD's Executive Vice President stated that Buffett and Munger appreciated BYD but emphasized that their selling was a normal investment practice [3]. - Despite BYD's positive remarks, the market reacted negatively, with a significant drop in BYD's share price following the news of Berkshire's divestment [4]. Group 2: Berkshire's Investment Strategy - While divesting from BYD, Berkshire Hathaway is increasing its investments in Japanese trading companies, with Mitsui confirming that Berkshire now holds over 10% of its voting rights [5]. - As of a March 17 disclosure, Berkshire held a 9.8% stake in Mitsui, valued at approximately $7.3 billion, and has since increased its stake to 10.2% in Mitsubishi [6]. - There is speculation that Berkshire's stakes in other Japanese companies, such as Itochu, Marubeni, and Sumitomo, may also have surpassed 10% [7].