Trust Buffett, or BYD?

On the one hand, Buffett's holding of BYD, on the other hand, BYD's high -level repurchase stocks. Investors should be optimistic about future development, or should I believe in Buffett caution?

First of all, investors saw BYD repurchase shares near historic highs, and then Buffett's reduction of BYD shares. One more and one empty. The two of BYD's future differences are so huge. So should investors believe BYD or Buffett? This is really a difficult choice.

From the performance of BYD's stock price plunge on August 31, many investors still chose to believe in Buffett. After all, the stock gods reduced their holdings, and there was a cause, which would have a certain impact on investors' long -term shareholding confidence.

From the status quo of BYD, the company is on the track of new energy vehicles. Various popular themes cover the whole body. The company itself also feels that the stock price still has a lot of room for increase, so he does not hesitate to repurchase the shares in the historical highest price range. Although this repurchase is unnecessary to this column, it really has an important support for the stock price.

But when the company desperately developed the new energy vehicle business, the stock god Buffett began to reduce BYD. Although he was rich in profit and reducing its shareholding, it was understandable, but when investment institutions generally sang Dort BYD, Buffett's maverick was undoubtedly poured a pot of cold water for investors. Investors will definitely think again, how should new energy vehicles be valued?

In fact, the new energy track stocks have been on fire for nearly two years, the cumulative increase during the period, the corresponding stock price -earnings ratio is also at a high level, and even some stocks have already appeared "city dream", but the institutional groups and retail investors have appeared. The popularity is not reduced, and the new energy stock track has been high. Buffett's reduction of BYD is likely to have a sector effect, especially for those stocks with high price -earnings ratios, Buffett's reduction of holdings may cause other investors to follow the situation, resulting in squeeze bubbles in the entire sector.

Of course, Buffett's reduction does not necessarily mean that BYD's stock price has grown to an end. After all, the stock god also missed. BYD is only one of the many positions of Buffett's positions. His reduction may also be to lay out other stocks with higher cost -effective stocks.

For BYD, no company will know himself better than himself. Since you dare to take out heavy money to repurchase your shares at a historical high, it is enough to show that the company's optimism of its own prospects is one of the confidence of long -term investors.

In fact, Buffett believes that the good time to go now may be correct. BYD believes that its valuation still has room for rise and may be correct. The key is how investors themselves see the development of the new energy vehicle industry. And whether BYD's future profit release can reach the expectations of investors in the secondary market.

Judging from the trend of the stock price, BYD's stock price plummeted, indicating that many investors choose to believe in Buffett. Of course, some shareholders also copied the bottom, indicating that some people still believe in BYD.

One thing that investors need to understand is that since Buffett has begun to reduce its holdings of BYD, it does not rule out that it will continue to reduce their holdings in the future, because if Buffett believes that BYD's stock price has been overestimated, he may not keep it. In this reality, investors should still be prepared.

For investors who are holding BYD stocks, they are still alert to related investment risks. After all, Buffett's reduction is mainly BYD's Hong Kong stocks, and A -share stocks are more expensive than Hong Kong stocks. In fact, there is a little bit of thinking about this column. For cheaper Hong Kong stocks, BYD does not repurchase, and it is necessary to repurchase more expensive A shares. What is the reason?

Critics 丨 Zhou Kejing

Edit 丨 Zhang Lan

Picture 丨 Oriental Wealth Network Screenshot, Vision China

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