Sou Hu Cai Jing·2025-10-21 09:49Core Viewpoint - The recent news about Warren Buffett's divestment from BYD has sparked discussions regarding the reasons behind this decision, suggesting it may not indicate a lack of investment value in BYD but rather a shift in Buffett's investment focus away from domestic markets [1] Investment Background - Buffett's investment in BYD was primarily influenced by Charlie Munger, who was recommended the company by Chinese investor Li Lu, highlighting the collaborative nature of the investment decision [4] - In 2008, Buffett purchased 225 million shares of BYD at HKD 8 per share, which represented approximately 20% of the company, resulting in a return of nearly 39 times the initial investment by the time of his divestment [6][8] Performance Comparison - Li Lu's investment in BYD began in 2002, and at its peak, he held 7.03% of BYD's H-shares, with his investment growing from over 200 million to more than 10 billion, yielding a return of over 70 times [8] - As of 2025, Buffett's stake in BYD is expected to fall below 5%, leading to speculation that he may have completely exited the position, reflecting a broader trend of reducing exposure to non-U.S. investments [8][11] Investment Philosophy - Buffett's investment strategy is characterized by a conservative approach towards new technologies and high-growth sectors, preferring traditional companies and maintaining a significant cash position in his portfolio [10][13] - His reluctance to invest in companies like Tesla underscores his cautious stance on the volatility and unpredictability associated with tech investments [10] Future Outlook - Buffett's preference for U.S. companies aligns with his long-term investment philosophy, emphasizing stability and predictability, especially as he approaches 90 years of age [11] - The decision to divest from BYD should not be interpreted as a negative assessment of the company but rather as a reflection of Buffett's evolving investment strategy and focus [12]