- Warren Buffet made a bet on BYD in September of 2008 – his investment has grown more than 500% in a decade
- BYD focuses on manufacturing alternative energy vehicles and rechargeable batteries
You know a business has great potential if it catches the eye of one of the world’s most renowned investors, Warren Buffet. Buffet’s company, Berkshire Hathaway Inc, bought the equivalent of what is now a quarter of the traded stock of in BYD (Build Your Dreams) Company Ltd in 2008.
BYD, China’s largest electric car maker and manufacturer of monorails, is Buffet’s most valuable holding in a publicly traded company that is outside the United States. His initial investment of $232 million is now worth $1.6 billion. This successful investment was made ahead of the market shift toward electric cars and beat Tesla to the game.
Despite a jump in sales, BYD’s traded stock has fallen over the past year. This could be attributed to the fact that BYD is overly dependent on government policies and doesn’t respond quickly enough to consumer demand.
However, that has not changed Berkshire Hathaway’s position in the company. Buffet recently sang China’s praises at the US China Investor Forum, calling what China has done as an economy over the past half-century a miracle. He is highly optimistic about China’s economic growth and future. China’s GDP growth has increased steadily and in 2018 had a growth rate of 6.6%.
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