In 14 years, he insisted on getting a bumper harvest today: How do Wall Street think of Buffett's holding of BYD?

With Berkshire Hathaway Inc., with Buffett's first time in 14 years, its long -term holding of BYD shares, the debate around this China ’s largest electric vehicle manufacturer has also heated up. : "Di Wang" isn't it "fragrant"?

Judging from the recent disclosure of the financial report data in the first half of the year, BYD's performance is undoubtedly hot: driven by the rapid growth of new energy vehicle business, BYD included 150.6 billion in the first half of the year, an increase of 65.71%year -on -year. In the first half of the year, the net profit attributable to listed shareholders was nearly 3.6 billion, which was over 2021, a year -on -year increase of 206%. At the same time, BYD's continuous expanding electric vehicle manufacturing market accounts for nearly 30%.

No matter from which angle to judge BYD's performance, it is clear that it is difficult for people to pick out the stabbing from this beautiful financial report data. Therefore, Buffett's selling BYD's behavior at this time undoubtedly confused some people.

In this regard, many Wall Streets said on the weekend that it turns out that all of this is actually not related to BYD's own performance -this time the sale may not be the concerns of BYD's basic business. In Buffett's own investment concept, and the recent changes in the investment style of Berkshire team.

Cole Smead, president of the investment company Smead Capital Management, said, "Berkshire has benefited a lot from investment in BYD -they made a lot of money. He (Buffett) looked at it growing up, and now it is based on the current open market. The price, he may say, I am willing to take out the money and go elsewhere. "

On Wednesday, BYD plummeted in the Hong Kong market 7.9%, the largest decline in seven weeks. Prior to this, the documents submitted to the Hong Kong Stock Exchange on Tuesday evening on Tuesday evening showed that it sold 1.33 million BYD H shares, with an average price of 277.1016 Hong Kong dollars/share. HK $ 100 million, the shareholding ratio dropped to 19.92%.

Since then, Buffett has continued to expand its holdings. As of the data released by Buffett on September 1st, Buffett holds 2071.4 million BYD shares, and the proportion of Bibiyi total shares has further dropped to 18.87%. Compared with the 225 million shares held in 2008, Buffett has accumulated cumulative cumulative cumulative cumulative Reduce holdings of 17.86 million shares.

Hot discussion in the industry

Buffett is the most famous value investor in the world today. This strategy pays attention to long -term value. The goal is to purchase high -quality companies' stocks at a reasonable price, so that investors can avoid those companies with rapid growth, expensive stock prices, and impermanence in the market. Over the past few decades, Buffett, who has adhered to this idea, has always held Coca -Cola and American Express stocks.

This strategy is very helpful to him. Since Buffett took over Berkshire in 1965, the company's stock price has far exceeded the S & P 500 index.

However, analysts pointed out that in recent years, Berkshire's stock investment portfolio has begun to have more "transaction components". Buffett's investment deputy Todd Combs and Ted Weschler will help jointly manage these investment portfolios.

Meyer Shields, an analyst at Keefe Bruyette & Woods, said Berkshire's current time to hold certain stocks is shorter.

He pointed out, "When the attractiveness of the stock price decreases, they are more and more willing to adjust. Their feeling is that if the current price is higher than the inherent value we evaluated, then selling stocks may be a good thing. In view of BYD's current price They will definitely come to such a conclusion. "

Of course, Buffett has been on BYD's ride over the years. Thanks to the general trend of transformation in China and even electric vehicles, the company's stock price rose 31%last year, and in 2020, it has soared 423%. BYD also produces semiconductors, and is also the third largest electric vehicle battery manufacturer in the world, with a global market share of 14%. Since 2008, Buffett's value has been appreciated by nearly 29 times.

In fact, as early as a month ago, the market reported that Buffett may reduce the news of BYD. On July 11, Citi Bank's hosting positions suddenly soared, and the proportion of positions rose from 14.88%of the previous trading day to 35.39%. As Buffett's shares held by BYD since 2008, it has been 225 million shares, which is exactly the same as the transfer limit at that time, which has triggered the largest decline in BYD's stock price in the past two years.

According to SMEAD, the custodian position may mean that Buffett will eventually exit, and it is expected that Berkshire Hathaway may continue to sell some of BYD stocks in this way.

Berkshire began investing in BYD in 2008 with Buffett's long -term business partner Charlie Munger, which also benefited from the matchmaking of Li Lu, chairman of Himalayan Capital. As early as July 2021, Li Lu reduced the holdings of BYD H shares and cash out 2.439 billion Hong Kong dollars.

However, even if it is reduced to BYD, it does not mean Berkshire's attitude towards Chinese assets. Munger has been optimistic about China for a long time, even in the context of Sino -US economic and trade frictions in recent years. At this year's Berkshire Annual Meeting, Munger said that he invested in China because he was "willing to take a little risk to embrace better companies at a lower price." Regardless of the end of Berkshire's BYD's position adjustment, industry analyst Matthew Palazola estimates that this part of the shares only account for about 2%of the Berkshire investment portfolio. "The impact on Berkshire's financial situation is small," he said.

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