Warren Buffett continues to sell shares of Chinese electric car giant

Berkshire Hathaway - Warren Buffett's investment company - has just sold more BYD shares and now holds less than 10% of the company's shares.

In a filing to the Hong Kong Stock Exchange on May 8, Berkshire said it had sold an additional 1.96 million shares of Chinese electric carmaker BYD, worth $58.9 million. Berkshire now holds more than 108 million shares, but its stake is only half of what it was in August last year, when it began selling shares.

Buffett did not explain why he sold the BYD shares he had praised so much at the Berkshire annual meeting last week. No shareholder asked him about it. Buffett does not typically discuss stocks he buys or sells while they are still in the process.

Warren Buffett (in red tie) at BYD's car launch in Beijing in 2010. Photo: Xinhua

However, at the AGM, Buffett also commented on the competition in the electric vehicle sector in the US and said it was too early to declare a winner. Both he and his deputy Charlie Munger affirmed that they do not want to invest more in the auto industry.

"Charlie and I have long felt that the auto industry is too tough. It's an industry where you have competitors all over the world and there always seems to be a winner, just not forever," Buffett said.

Berkshire first invested in BYD in 2008, investing $22 million. Buffett has praised BYD founder Wang Chanfu and visited the company's factory in China in 2010.

BYD has now become one of the world's largest electric car manufacturers, selling nearly 1.9 million vehicles last year.

Last July, before Berkshire began selling BYD shares, its stake in the company was worth more than $9.5 billion. Even after the sale, it still has more than $3.3 billion left.

Berkshire is required to disclose information whenever its stake falls by 1%. When it last disclosed, it still held 119.7 million BYD shares, or 10.9% of the company.

Berkshire's stock portfolio is now worth more than $300 billion, including $159 billion in Apple stock. It also holds large stakes in Bank of America, Coca-Cola and American Express.

Ha Thu (according to AP)

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