Why Did Warren Buffett Sell BYD Stocks?

When Warren Buffett’s Berkshire Hathaway first invested in BYD in 2008, few could have predicted how transformative the move would be. Over 17 years, the Chinese electric vehicle maker grew from a niche player into one of the industry’s giants, propelled partly by Buffett’s backing. 

However, in 2025, Berkshire Hathaway completed its exit, selling off the entire stake. This decision marks the end of a remarkable chapter in Buffett’s investment history, prompting questions about why one of the greatest investors stepped away from BYD now.

Berkshire Hathaway’s Long-Term Bet on BYD

Back in 2008, Berkshire Hathaway acquired roughly 225 million shares in BYD for $230 million, representing about 10% of the company. This investment aligned with Buffett’s penchant for long-term holdings in companies with strong potential, especially underappreciated or emerging firms. 

BYD was then an electric vehicle and battery manufacturer based in Shenzhen, China, still finding its footing. Over the years, this stake grew exponentially in value as BYD transformed into a global leader in electric and hybrid vehicles, often seen as Tesla’s biggest competitor in China and abroad. 

By 2022, Berkshire’s holdings were valued close to $9 billion, and by early 2025, valuations topped $7.7 billion. The investment yielded returns exceeding twenty times the initial outlay, firmly establishing Buffett’s faith in BYD’s future.

Stay updated on the latest crypto projects and blockchain ecosystem developments by visiting the Bitrue Blog. Don’t miss out on Bitrue’s ongoing events and promotions, where you can earn bonuses and receive free crypto tokens just by participating. Join Bitrue today to start trading top cryptocurrencies securely, register now and take advantage of exclusive features and rewards.

The Exit and Its Timing

Berkshire Hathaway began reducing its stake in BYD in 2022, selling shares gradually as BYD’s stock price peaked. The exit completed in early 2025 as Berkshire’s energy division reported the stake’s value at zero in its March quarter filings. 

This indicated a full divestment, confirmed by financial filings and statements from both Berkshire Hathaway and BYD. The timing of this exit coincides with shifting dynamics in BYD’s business and the wider EV market. 

BYD has recently faced headwinds with its domestic sales declining for several months, attributed to tougher government regulations and price war measures. Additionally, BYD revised its annual sales estimate downward by nearly 16%, signaling growth challenges amid increasing competition.

Read Also: Nasdaq Pushes SEC Approval to Tokenize Stocks on Blockchain

Market Reaction and Investor Implications

News of Buffett’s exit shook the market briefly, with BYD shares falling around 3% on the Hong Kong Stock Exchange shortly after the announcement. This is common when a marquee investor sells off significant holdings, even though the stock split and operational fundamentals differ.

Unlike a straightforward loss, Berkshire’s exit should be viewed through the lens of strategic profit-taking and portfolio rebalancing. Buffett’s investment in BYD delivered extraordinary returns, and the sale reflects a pragmatic decision to capitalize gains and possibly redirect capital elsewhere. 

For current and prospective investors, it’s a signal to monitor BYD’s fundamentals carefully but not necessarily to panic over the exit.

Read Also: Trust Wallet Unleashes Tokenized Stocks & ETFs for 200M+ Users

What Does This Mean for BYD’s Future?

While Berkshire Hathaway’s exit closes a significant chapter for BYD, the company itself continues to evolve. It remains a major player in electric mobility and clean energy solutions with plans to expand both domestically and internationally. 

The challenges of recent quarters do highlight the competitive pressures and regulatory environment the company must navigate.

BYD’s ability to innovate and maintain market share in this crowded sector will dictate its future trajectory. Without Berkshire’s stake, the stock’s price may become more volatile, but BYD’s core strengths in technology and manufacturing capacity offer a foundation for continued growth.

Read Also: AAPLx Price Prediction 2025–2030: Can Apple Tokenized Stock Keep Rising?

Conclusion

Warren Buffett’s decision to sell BYD shares marks the end of an investment story spanning nearly two decades, which turned a modest outlay into billions of dollars. 

The exit is less about a lack of faith and more about prudent portfolio management amid changing market conditions. While BYD faces some current challenges, the company remains a formidable force in the EV space. 

Investors should weigh Berkshire Hathaway’s past endorsement and departure alongside BYD’s ongoing innovation and market position.

FAQ

Why did Warren Buffett sell BYD stocks?

Buffett sold to realize gains after the investment grew over twentyfold and amid changing market conditions for BYD.

How much did Berkshire Hathaway make from BYD?

Returns are estimated to be about $7 billion or roughly 30 times the original investment.

When did Berkshire Hathaway start investing in BYD?

The initial investment was made in 2008.

What does Berkshire’s exit mean for BYD’s stock price?

The stock dropped about 3% soon after the announcement but investors should focus on fundamentals rather than a single sale.

Is BYD still a strong company without Berkshire’s stake?

Yes, BYD continues to lead in electric and hybrid vehicles and is focused on future growth despite recent challenges.