Buffett’s Billion Dollar Bet Comes to an End

Warren Buffett’s Berkshire Hathaway has officially sold its entire stake in Chinese electric vehicle maker BYD, closing the chapter on an extraordinary 17 year investment. According to filings from Berkshire’s energy unit, the value of its BYD holding was recorded as zero at the end of March 2025, a sharp drop from 415 million dollars reported at the close of 2024.

Buffett had first invested in BYD in 2008, picking up 225 million shares for 230 million dollars, which at the time translated into a 10 percent stake in the Shenzhen based company. As BYD’s stock surged more than 20 fold, Berkshire gradually began trimming its position starting in 2022.

Returns That Made History

From September 2008 to March 2025, BYD shares gained over 4,500 percent, turning Buffett’s original investment into billions of dollars in profits. Li Yunfei, general manager of branding and public relations at BYD, publicly thanked Berkshire for its “investment, help and companionship” over nearly two decades, describing the exit as a “normal” stock trade.

This investment stands out even among Buffett’s storied track record, ranking as one of his most successful long term holdings outside the United States.

Challenges Ahead for BYD

Even as Buffett books his gains, BYD faces turbulence in its home market. Once considered Tesla’s fiercest competitor, the Chinese automaker has reported its first quarterly profit decline in three and a half years. A government crackdown on aggressive price wars has slowed growth, while domestic sales, which make up almost 80 percent of production, have fallen for four consecutive months. The company has also revised its annual sales target down by as much as 16 percent to 4.6 million vehicles.

Buffett’s Focus on Philanthropy

Buffett’s exit from BYD comes in the same year he pledged to donate six billion dollars worth of Berkshire Hathaway shares to five charitable foundations. About 9.43 million Class B shares were given to the Bill & Melinda Gates Foundation Trust, while nearly three million shares were split among his children’s foundations and the Susan Thompson Buffett Foundation.

Since 2006, Buffett has consistently made large annual donations, part of his broader commitment under the Giving Pledge, which he co founded with Bill and Melinda Gates in 2010. In total, the five foundations have received shares valued at more than 60 billion dollars since the pledge began.

The Legacy of the BYD Exit

The BYD story highlights Buffett’s unmatched ability to spot long term value. For investors, it underscores the power of patient capital and conviction in industries poised for growth. For BYD, the road ahead lies in navigating competitive pressures while holding its ground as a global EV leader.

 

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