2024-07-23 16:24:04
Berkshire Hathaway, the investment company run by Warren Buffett, has cut its stake in Chinese manufacturer BYD to less than 5%. The company sold a block of shares on the Hong Kong Stock Exchange, reducing its stake from 5.06% to 4.94%.
Buffett’s decision to reduce his stake in BYD reflects both the development of the electric car market and the growing trade barriers facing Chinese manufacturers in the EU.
The relationship between Berkshire Hathaway and BYD began in 2008, when the American company acquired 225 million shares for approximately 214.63 million euros. Between 2022 and 2023, Buffett significantly reduced his stake in BYD after the company’s stock rose 600% from 2008 and hit an all-time high in April 2022. On Monday, BYD shares on the Hong Kong stock market rose 1.2 percent, trading at around 28.96 euros a share, after the stock increased its market capitalization by more than 17 percent since January.
Berkshire Hathaway’s reduction in BYD’s stake, however, comes amid trade tensions. The European Union recently imposed tariffs of 17.4% on BYD, 20% on Geely and 38.1% on SAIC on imports of Chinese-made electric vehicles, and these tariffs may become permanent in November. The US also plans to impose 100% tariffs on Chinese cars from August 1 in a bid to protect its auto industry.