Warren Buffett Unloads Millions of BYD Shares
Berkshire Hathaway Continues to Trim Position
Buffett May Have Been Taking Profits, Pruning Portfolio
Warren Buffett's Berkshire Hathaway has continued to unwind its long position in BYD, selling another 155 million Hong Kong-listed shares of the electric vehicle maker. The move follows a series of share sales by Berkshire over the past year, as Buffett appears to be taking profits and pruning his portfolio.
Berkshire Hathaway first invested in BYD in 2008, acquiring a stake that has since grown to be worth billions of dollars. However, Buffett has been selling down his BYD shares in recent months, with the latest sale representing about 2.7% of BYD's outstanding shares.
Analysts say that Buffett may be taking profits after BYD's stock price has soared in recent years. BYD shares have more than doubled in value since March 2020, when Buffett bought an additional $300 million worth of shares.
Buffett may also be pruning his portfolio, which has become increasingly concentrated in a few large holdings. Berkshire Hathaway's top five holdings now account for more than 70% of the company's investment portfolio.
The sale of BYD shares comes as Berkshire Hathaway has been making other moves to reshape its portfolio. In recent months, the company has significantly increased its investment in Apple and reduced its stake in Wells Fargo.
It is unclear whether Buffett plans to sell all of his BYD shares. However, the recent sales suggest that he may be reducing his exposure to the Chinese automaker.
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