In September 2025, Berkshire Hathaway confirmed that it had sold all its BYD shares, marking the end of a partnership that began more than fifteen years ago.

The move has left investors wondering what it means for China’s EV market and whether Buffett will adjust his investment strategy going forward.

In 2008, Berkshire Hathaway, through its energy unit, invested roughly $230 million into BYD, acquiring about 10% of the company’s equity. At the time, BYD was barely known outside China. 

The investment proved extraordinarily successful. At its peak, the stake was valued at nearly $9 billion, roughly thirty times the original investment. Buffett’s involvement also helped raise BYD’s profile among global investors, with his endorsement as the “Oracle of Omaha” giving the company a powerful credibility boost.  

A Gradual and Complete Exit  

Berkshire’s departure from BYD was not abrupt. Starting 2022, the firm gradually reduced its position, selling shares over several years. By early 2025, regulatory filings showed its holdings had reached zero.  

This step‑by‑step exit is likely aimed at maximizing profits while minimizing market disruptions. Under the rules of the Hong Kong Stock Exchange, companies are required to disclose ownership changes when their holdings exceed key thresholds. After Berkshire’s stake fell below 5%, reporting requirements eased, providing more flexibility in completing the final sell-off. 

Overall, the move reflects Buffett’s adherence to data over sentiment. It may also signal his expectations of a market slowdown similar to the one experienced by Tesla stock in recent years. 

Several factors appear to have influenced Warren Buffett’s decision to exit BYD:

• Profit realized: Berkshire achieved more than 30-fold returns on the initial investment.
• Growth slowdown: BYD reported its first profit decline in three years, with domestic sales falling for four consecutive months. The company also revised its annual sales forecast to 4.6 million vehicles, about 16% lower than its previous estimate.  
• Intense competition: China’s EV market has become a price war, with both domestic and foreign automakers battling for share and squeezing margins.  
• Regulatory and economic concerns: A heavy reliance on government subsidies and shifting policies poses an additional risk for foreign investors.  
• Investment discipline: Buffett has long emphasized disciplined capital allocation — selling even great businesses when the risk‑reward balance changes.  

Implications for BYD and the Market

Following Berkshire’s announcement, BYD’s shares fell more than 3% in Hong Kong. Company executives posted on Weibo, thanking Berkshire for years of support and describing the exit as a normal investment decision.

Losing such a high-profile backer is symbolically significant. Without Buffett’s steady presence, some investors may become more sensitive to short‑term volatility, competitive threats, or regulatory shifts.

To maintain confidence, BYD will likely need to double down on technological innovation, cost efficiency, and defending its market share against rivals like Tesla, Nio, and XPeng. 

For Berkshire, the exit marks the end of one of its most successful investments. It also reduces exposure to China’s volatile EV industry and frees up capital for new opportunities. The episode underscores several enduring lessons from Buffett’s playbook:

1. Patience pays: Berkshire held BYD shares for fifteen years — proof that long-term conviction can yield outsized rewards.
2. Timing matters: Even the most successful investments deserve re-evaluation when conditions change.
3. Context is crucial: BYD’s current challenges highlight the cyclical and competitive nature of the EV industry.
4. Portfolio discipline counts: Selling a winner isn’t failure — it’s often the smart way to redeploy capital.

Berkshire Hathaway’s divestment closes one of Warren Buffett’s most remarkable investment stories. It showcases both exceptional returns and shrewd timing. Now, BYD faces the challenge of sustaining its growth and leadership in the electric-vehicle market — without Buffett’s reassuring backing.

More broadly, the episode serves as a reminder that past success does not guarantee future gains. In investing, knowing when to buy and when to sell remains the ultimate skill.

Frequently Asked Questions

Why did Warren Buffett’s Berkshire Hathaway sell all its BYD shares?

Berkshire Hathaway sold the shares primarily to realize a massive profit, which was about 30 times their original 2008 investment. The decision was also driven by changes in the business environment, including a recent slowdown in BYD’s sales growth and increasing price competition in China’s electric vehicle market. This move aligns with Buffett’s focus on disciplined capital allocation when conditions change.

How much money did Berkshire Hathaway make from its BYD investment?

Berkshire Hathaway initially invested about $230 million in BYD in 2008. At its peak valuation, this 10% equity stake was worth nearly $9 billion. This represents an extraordinary return of roughly 30 times the original investment amount over fifteen years.

What was the symbolic impact of Buffett’s exit on the BYD stock price?

Following the confirmation of Berkshire Hathaway’s complete exit, BYD’s shares fell by more than 3% in Hong Kong. While executives called the move a normal investment decision, losing such a high-profile backer is symbolically important. Some investors may now become more sensitive to competitive threats and market shifts without the “Oracle of Omaha” providing steady support.

Is Berkshire Hathaway’s exit from BYD considered an abrupt or sudden move?

The exit was not abrupt; Berkshire began gradually reducing its position starting in 2022. By selling shares over several years, the firm aimed to get the best profits while holding steady on the market. This methodical approach helped minimize market disruption from the sale of such a large stake.

How long did Berkshire Hathaway hold the Chinese EV company BYD’s stock?

Berkshire Hathaway held its investment in BYD for about fifteen years, starting in 2008 and completing the final sales in 2025. This long holding period is a classic example of Warren Buffett’s strategy that shows how long-term conviction in a business can lead to huge rewards.

What factors caused a slowdown in BYD’s business growth recently?

BYD reported its first profit decline in three years, and domestic sales had fallen for four months straight before the exit. These financial pressures came from intense competition and a price war among domestic and foreign automakers in China’s EV market. The company also lowered its yearly sales forecast, showing reduced expectations for growth.

Is the exit a sign that Warren Buffett is completely against investing in the Chinese market?

The move primarily reflects Buffett’s long-standing rule to sell an asset when the risk-reward balance changes, regardless of geography. The specific risks he faced included intense market competition and China’s reliance on shifting government subsidies. The sale reduces exposure to the volatile Chinese EV industry but doesn’t necessarily mean a total rejection of all future investments in China.

What is the practical lesson investors can learn from the gradual way Berkshire sold off its shares?

The practical lesson is to consider how regulatory rules affect major sales decisions. Berkshire delayed reporting some final sales after its stake fell below a 5% threshold on the Hong Kong Stock Exchange. This strategy gave them greater flexibility and allowed them to execute the full sell-off more smoothly and profitably.

What must BYD do now to maintain confidence and market share without Buffett’s backing?

To maintain investor confidence and its market leadership, BYD faces the pressure of needing to double down on several core areas. This includes focusing heavily on technological innovation and improving cost efficiency. They must actively defend their significant market share against powerful rivals like Tesla and other Chinese EV companies.

Did the investment in the Chinese electric vehicle maker violate Buffett’s usual rule of only investing in well-known companies?

When Berkshire invested in 2008, BYD was barely known outside of China, which seems unusual for Buffett’s playbook. However, the success proves that his endorsement, earning the company a powerful credibility boost among global investors, was a huge advantage. This outcome shows that choosing a solid company with strong future potential can sometimes outweigh immediate brand recognition for a highly-disciplined investor.