Buffett Sells BYD Shares Again, Cashing Out $1.26B

On November 4th, the Hong Kong Stock Exchange website posted an announcement stating that "Stock God" Warren Buffett's company, Berkshire Hathaway, once again reduced its holdings in BYD shares, cashing out 560 million Hong Kong dollars this time.

Since 2022, Buffett has reduced his BYD holdings on multiple occasions.

In August of this year, Buffett began to reduce his holdings, cashing out nearly 370 million Hong Kong dollars, and continued to reduce in September, cashing out 450 million Hong Kong dollars.

Therefore, to date, Buffett has cashed out a total of 1.38 billion Hong Kong dollars from BYD, equivalent to 1.26 billion RMB.

According to the information, Buffett's company invested in BYD in 2008 when the stock price was 8 Hong Kong dollars, and now it has risen to 197 Hong Kong dollars, an increase of more than 20 times.

It has to be said that Buffett's investment vision is very sharp.

However, Buffett has never reduced his holdings in BYD for 14 years since he invested, and this year he suddenly started to reduce his holdings, and the multiple reduction actions have attracted the attention of the public.

Suddenly cashing out more than 1 billion, what does Buffett's move mean?

What signal does it release?

It should be noted that BYD's performance this year has been very eye-catching, whether it is performance data or sales data, both have achieved a surge, which has made the capital market and consumers look up to it.

According to the published data, BYD's new energy vehicle sales in October of this year reached 217,800 vehicles, a year-on-year increase of more than 160%.

In the new energy vehicle sales list, Tesla ranked second with sales of 71,700 vehicles, far behind, SAIC-GM-Wuling was 52,000 vehicles, ranking third.

It can be found that BYD is in an absolute leading position in the list, even if Tesla, SAIC-GM-Wuling, Geely, GAC Aion, Chery and other five car companies' new energy vehicle sales are added together, they are still not as good as BYD.

Not only in the new energy vehicle market, BYD's sales are even more than FAW-Volkswagen, SAIC Volkswagen and other joint venture giants, becoming the car company with the highest sales in China.

It was unimaginable 10 years ago, but now it has been realized.

BYD has really exploded in 2022.

BYD is not only in the "king" position in the domestic market, but also in the global new energy vehicle market!

In the global new energy sales ranking list from January to August this year, BYD's sales are close to one million vehicles, while Tesla ranks second, and many German car giants are on the list.

BYD has become the sales champion in the global new energy vehicle market.

In terms of performance, according to the financial report for the first three quarters of 2022, BYD's revenue in the first nine months of this year has exceeded 260 billion, an increase of more than 80%, and the net profit has reached 9.3 billion yuan, an increase of more than 280%, among which the net profit in the third quarter has increased by 350%.

Under the impact of the epidemic, BYD's performance data has made many industries envious and jealous.

The surge in sales has directly driven the performance to rise sharply, and the profitability has gradually become stronger.

Currently, BYD's net profit per car sold can reach 10,000 yuan.

Since BYD's sales and performance are in a state of surge, why does Buffett reduce his holdings at this time?

According to BYD's previous official response, the reduction of shareholders is determined by the shareholders' investment decisions, and the company's own operations are normal.

In fact, BYD's stock price is at a high level this year, and reducing holdings at this time is a very clear investment decision.

After all, it has made more than 20 times, and Buffett has not reduced much.

14 years ago, Buffett invested 1.8 billion Hong Kong dollars to buy, and now the value of these stocks has reached more than 40 billion, and Buffett has only reduced more than 1 billion.

Currently, Buffett still holds 17.92% of BYD's shares.

On the other hand, in August this year, Buffett's Berkshire Hathaway company announced the financial report for the second quarter of 2022, and the company lost nearly 30 billion RMB in that quarter.

Due to the sharp decline in the US stock market, the "Stock God" suffered a lot.

However, Buffett believes that this is a misreading by the media.

These data are the result of accounting standards, not the performance of actual operations.

As of the end of the second quarter of this year, Buffett's company holds more than 100 billion US dollars in cash, and still buys stocks in the first half of the year.

The "Stock God" has never changed his will to bottom out, and the more than 1 billion cashed out from BYD and its cash reserves are not comparable, so Buffett's cashing out from BYD is just a normal investment decision.