From Bearon’s
S?hares in BYD sank on Tuesday amid speculation that high-profile investor Warren Buffett’s Berkshire Hathaway was selling off its position in the Chinese electric-vehicle maker.
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Could be true. The shares registered on the HK stock exchange match almost exactly to Brk’s share.
But if so, strictly speaking, it won’t be “Buffett is selling”. It’s a Munger investment.
Also, I remembered he sold BYD from DJCO’s portfolio. So this news could be true.
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If they are selling out, I wonder what the rationale is? We’ve had a nice run (LT Cap Gain) and hyper competition is just around the corner?
If they are selling out, I wonder what the rationale is? We’ve had a nice run (LT Cap Gain) and hyper competition is just around the corner?
If BH Energy decides to sell BYD shares the rationale would probably be based on valuation. It is entirely possible that the shares were registered so that they could be sold someday but are not being sold currently.
Corporations like Berkshire do not have Long Term capital gains tax treatment. A gain is a gain and that is just income for a c-corp.
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I just hope it’s due to valuations and not something else…
I read somewhere CCP wants to own 1% of all the important companies.
Could it be Berkshire is doing this as a statement.
Looks like it’s unknown if this change is an indication that Berkshire is selling BYD. But time will tell.
Munger’s comment a few months ago that “this has never happened to us before”, sounded like “this” means a market price going up way beyond a reasonable valuation. I may be wrong but that was my take. Certainly looks pretty racy for a capital intensive business with all kinds of hurdles.
They are doing well of late but the biggest change seems to be investor sentiment.