Charlie Munger says BYD is so far ahead of Tesla in China ‘it’s almost ridiculous’
Charlie Munger said Wednesday that Tesla pales in comparison to BYD in China, calling the Chinese electric vehicle maker his favorite stock ever.
BYD has been a lucrative bet for Berkshire, which first bought about 220 million shares in September 2008. The stock has jumped more than 600% in the past 10 years amid the massive growth in electric vehicles. Berkshire has actually been trimming its BYD stake in the past year as the stock has become increasingly pricey.
Asked if he would prefer Tesla or BYD as an investment, Munger said the answer is easy.
“Tesla last year reduced its prices in China twice. BYD increased its prices. We are direct competitors. BYD is so much ahead of Tesla in China ... it’s almost ridiculous,” Munger said.
“BYD last year made more than $2 billion after taxes in the auto business in China. It’s incredible what’s happened,” Munger said. “If you count all the manufacturing space they have in China to make cars, it would amount to a big percentage of the Manhattan island, and nobody had ever heard of them a few years ago.”
“I don’t buy him, and I don’t short him,” Munger said Wednesday.
BYD has been a lucrative bet for Berkshire, which first bought about 220 million shares in September 2008. The stock has jumped more than 600% in the past 10 years amid the massive growth in electric vehicles. Berkshire has actually been trimming its BYD stake in the past year as the stock has become increasingly pricey.
Asked if he would prefer Tesla or BYD as an investment, Munger said the answer is easy.
“Tesla last year reduced its prices in China twice. BYD increased its prices. We are direct competitors. BYD is so much ahead of Tesla in China ... it’s almost ridiculous,” Munger said.
“BYD last year made more than $2 billion after taxes in the auto business in China. It’s incredible what’s happened,” Munger said. “If you count all the manufacturing space they have in China to make cars, it would amount to a big percentage of the Manhattan island, and nobody had ever heard of them a few years ago.”
“I don’t buy him, and I don’t short him,” Munger said Wednesday.
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45DTE : BYD so far ahead? LMAO
ZnWC : Why Berkshire Hathaway is selling BYD share?
Reuter (2 Feb 2023):
"Berkshire Hathaway, the investment company owned by Warren Buffett, has sold 1.55 million Hong Kong-listed shares of electric vehicle maker BYD (002594.SZ) for HK$351.81 million ($44.85 million), a stock exchange filing showed..."
Berkshire Hathaway sells $44.9 mln of shares in China's BYD
102095561 : byd is a Chinese company .any thing china will kena slap by USA or put in entity list like huawei.usa cannot stand china ahead of USA I. any field.byd will join the list later if they overtake ford or tesla
TeslaconomicsOP 45DTE:
TeslaconomicsOP ZnWC: yep
TeslaconomicsOP 102095561:
ZnWC 102095561: Berkshire sold BYD share is a business decision not political. To be politically right, Berkshire should not sell TSMC share (Taiwan Semiconductor Giant). Can Munger's comment about BYD company can be trusted?
CNN Business (15 Feb 2023):
"Shares in Taiwan Semiconductor Manufacturing Company (TSMC) fell as much as 4% on Wednesday, after Warren Buffett's Berkshire Hathaway disclosed that it had sold most of its holdings in the chip giant..."
Warren Buffett's company sells major stake in Taiwanese chip giant TSMC | CNN Business