China Fund News Reporter Wu Juanjuan Intern Zhang Xinxin
"Stock God" Buffett has new moves!
According to the Hong Kong Stock Exchange's data disclosed by Yi, on November 8, 2022, Buffett's Berkshire Hathaway sold 5.7825 million shares of BYD Co., Ltd. H shares (hereinafter referred to as BYD H shares), with an average reduction price of HK$196.99 per share (equivalent to approximately RMB 179.11), and the total transaction amount is approximately HK$1.139 billion (equivalent to approximately RMB 1.036 billion). As a result, Berkshire Hathaway's holdings of BYD H shares decreased to about 139 million shares, and its shareholding in also dropped from 17.15% to 16.62%.
Data source: Hong Kong Stock Exchange disclosed Easy
Buffett reduced his holdings four times this year and cashed out a total of HK$2.519 billion
This year. This is not the first time Buffett reduced his holdings in BYD this year. Before this reduction, Berkshire Hathaway had reduced its holdings in BYD three times.
Data source: Hong Kong Stock Exchange disclosed Yi
The earliest share reduction this year occurred on August 24. According to data disclosed by the Hong Kong Stock Exchange, Berkshire Hathaway reduced its holdings of 1.331 million BYD H shares at an average price of HK$277.10 per share, with a total transaction amount of approximately HK$369 million, and its shareholding ratio dropped from the previous 20.04% to 19.92%. BYD's Hong Kong stock market fell by 5.20% on the day of .
After that, Berkshire Hathaway reduced its holdings again on September 1. This time, the company reduced its holdings of 1.716 million shares of BYD shares H shares at an average price of 262.72 per share, cashing out about HK$451 million. After this share reduction, its shareholding ratio is 18.87%. BYD H shares fell by 3.96% on the day.
Berkshire. Hathaway reduced its holdings in BYD shares for the third time on November 1. 3.297 million shares of BYD H shares were sold this time, with an average reduction price of HK$169.87 per share, with a total transaction amount of approximately HK$560 million, and its shareholding ratio dropped to 17.92%. This share reduction does not seem to have much impact on BYD's stock price . Its stock prices rose by 4.50% and 3.98% respectively on the same day and the next day.
As of now, Buffett has sold a total of 12.1265 million shares of BYD H shares in four share reductions this year, cashing out a total of approximately HK$2.519 billion (equivalent to approximately RMB 2.286 billion).
performance, production and sales volume, and market share all performed well
Recently, BYD released its third quarter report for 2022, which showed its strong growth momentum in performance. According to wind data, during the reporting period, its operating income was 117.081 billion yuan, increased by 115.59% year-on-year, and its net profit attributable to shareholders was 9.311 billion yuan, a year-on-year increase of 281.13%. BYD's cumulative operating income in the first three quarters of 2022 was 267.688 billion yuan, a year-on-year increase of 84.37%; net profit attributable to shareholders was 9.311 billion yuan, a year-on-year increase of 281.13%.
In addition, BYD also has outstanding performance in production and sales. According to BYD's October 2022 production and sales report, its new energy vehicle production is about 220,100 vehicles and sales are about 217,800 vehicles. The cumulative automobile production this year was about 1.4117 million units, a year-on-year increase of 233.53%; the cumulative automobile sales this year were about 1.3979 million units, a year-on-year increase of 233.92%.
In addition, BYD also has a strong competitive advantage in market share. According to recent research reports from Anjie Securities in Hong Kong, since February 2021, BYD passenger car retail monthly sales domestic market share (hereinafter referred to as market share) has shown an upward trend. In April 2021, its market share exceeded Tesla China. Since the beginning of this year, BYD's market share has been much higher than Tesla China and major new car companies including NIO , Ideal, Xiaopeng , Nezha and Zero-Pan. BYD's market share reached 31.3% in September this year.
Image source: Anjie Securities Research Report
Reasons for reducing holdings in the market are different
Why Buffett chose to reduce holdings in BYD again this year, the "three excellent students" that performed well in performance, production and sales volume and market share. Since Buffett did not comment on reducing holdings in BYD, the real reason is unknown.
According to CNBC, Buffett may be trying to free up cash for other investments. Berkshire Hathaway has been actively buying stocks in other companies.The company significantly increased its holdings in Occupy Petroleum shares in the second and third quarters of 2022. Because Buffett bought BYD stock at a lower price in the early stage, his profit was more than 30 times. Therefore, its share reduction is likely to be the cashing of part of the profit after the stock rises sharply.
According to the views of the Master position monitoring website guru focus, S&P 500 fell 20% from its historical high, so there are many value investment opportunities in the US stock market now. In addition, the current complex geopolitical environment has exacerbated the uncertainty of the international stock market. As a conservative investor, Buffett likes to hold a lot of cash on hand. In this case, he may take investment in overseas stock markets prudently.
Edited by: Joey
