Commentary
When Berkshire Hathaway, Warren Buffett’s investment firm, began trimming its stake in Chinese electric car and battery maker BYD, rumors began circulating on what it means for the company, China’s stock market, and ordinary investors following Chinese stocks.
But to regular everyday investors who follow Buffett, it means very little.
On the surface, the stock sales appear strange. After all, BYD now is the world’s second-biggest electric vehicle (EV) battery maker, overtaking South Korea’s LG. Sales of its EVs have also been accelerating. Its first-half 2022 net income tripled. BYD also has a commanding 30 percent market share in China’s expanding EV market. Those are all good news that on their own, should send the company’s stock soaring….