Recently, we learned from the Hong Kong Stock Exchange that Buffett’s Berkshire Hathaway reduced its holdings of 1.3475 million BYD H-shares (0121.1. HK) on June 11th, with an average price of HKD 230.46 per share and a total trading amount of approximately HKD 311 million. The holding ratio decreased from 7.02% to 6.9%.
Since August 2022, Berkshire Hathaway has reduced his holdings in BYD for the first time. According to data from the Hong Kong Stock Exchange, Buffett has cumulatively reduced his holdings in BYD’s H-shares 14 times, with half of the reductions occurring in 2023. Despite Buffett’s seven holdings reductions in 2023, BYD’s stock price did not show significant fluctuations.
According to data from the China Association of Automobile Manufacturers, BYD’s domestic market share of new energy vehicles reached 31.5% in May, while Tesla ranked second with only 6.87% of the market share, and no other brand exceeded 5%. We have learned from BYD’s official sources that in May, sales of 331817 vehicles increased by 38.13% year-on-year; The cumulative sales in the first five months of this year were 1271325 units, a year-on-year increase of 26.80%. In May, passenger car sales reached 330488 units, a year-on-year increase of 38.2%. The cumulative sales of new energy exceed 7.6 million vehicles. The export of passenger cars in May was 37499 units, a year-on-year increase of 267.5%.
Buffett’s reduction of his stake in BYD may be due to various factors, including better capital allocation, adjustment of investment strategy, and possible shift in the company’s strategic focus. The constantly changing market situation is also constantly influencing investor decisions. Although Buffett has reduced its holdings, BYD’s performance and development momentum remain strong in the industry.