By Jiahui Huang
Warren Buffett's Berkshire Hathaway pared its stake in BYD to less than 5%, further unwinding its long-term bet on China's largest electric-vehicle maker amid a broader refocus on U.S. investments.
The Omaha, Nebraska-based investment giant recently lowered its stake in BYD to 4.94% from 5.06%, selling 1.4 million H shares at an average of 246.96 Hong Kong dollars, or about $31.64 each, according to an exchange filing Monday. Dropping below the 5% threshold means that Berkshire will no longer be required to disclose its sales of BYD stock on the Hong Kong stock exchange.
BYD shares closed 3.1% lower in Hong Kong and 4.7% lower in Shenzhen on Tuesday. The company's Hong Kong-listed shares have risen about 11% this year, while its China-listed shares are up about 28%.
Berkshire has been regularly trimming its stake in BYD since August 2022, shortly after shares hit a record high. At the time, Berkshire's shareholding exceeded 20%. At its peak in 2008, Berkshire held a nearly 40% stake.
Berkshire didn't immediately respond to a request for comment.
Buffett said in May that his late business partner, Charlie Munger, had been the one to initially push to buy into BYD, but that going forward, Berkshire would focus its primary investments in the U.S.
Berkshire in early 2023 sold all its holdings in Taiwan Semiconductor Manufacturing Co., the world's largest contract chip maker.
Berkshire "made it clear that they will engage with more opportunities in U.S." markets, Nomura analyst Joel Ying said. Intense competition in China's EV market is likely another major reason for trimming the BYD stake, he said.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
07-23-24 0548ET
