BYD ADR fell again! How far can BYD go without Buffett ?
No matter how good the story is, it will end. On his 92nd birthday, Buffett made a decision that made many investors unhappy and reduced his holdings in BYD.
Interestingly, many investors think that Buffett is wrong, but it is still an opportunity to buy at the bottom of . Lingtong News Agency feels that it takes time to prove how far BYD can go in the capital market without Buffett's spiritual pillar, but at least last week's last US stock trading day BYD ADR fell a lot again. If you look at the K-line chart, BYD has already fallen freely. We all know that the US stock market will spread to Hong Kong and to the stock prices of other companies such as Wei Xiaoli. In fact, Wei Xiaoli's trend has been terrible this year.
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The essence of Buffett's old-fashioned value investment
Why did Buffett retreat from BYD? Lingtong News Agency thinks this is due to life experience and human nature. Bloomberg's analysis believes that first, based on Buffett's history, Buffett will continue to reduce his holdings in BYD, and second, this is actually the essence of Buffett's old-fashioned value investment. In fact, this is almost all human nature and values that are lacking from fund managers to leeks. Many people may have the fun of playing mahjong. In the casino, they want to make a profit if they lose, and they want to continue if they win. Therefore, there are many cases when they agree to end up playing mahjong at 8 o'clock and become overnight. This is human nature. The same is true in the stock market, especially Chinese leeks, who have no interest in long-term investment. Few people study fundamentals. They all want to know a chip and a concept. The next day, they are looking for dark horses. Even if they really have a dark horse, few people can persist. This is the so-called buying is easy and difficult to sell. What Buffett taught everyone is that first, insist on long-term investment, and second, you should stop when you get off the bus.
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Chinese electric vehicles enter crazy
Buffett retreated from BYD. In fact, Buffett has witnessed the crazy history of China's electric car market from scratch to now. Selling in a crazy time is probably an investment philosophy and most people cannot do it. From the electric car market, the penetration rate of Chinese new energy vehicles has exceeded 25%. Electric vehicles have changed from the Tesla to the 100-group melee of countless electric car brands in China. This is a bit of the original smartphone market. Apple took the lead, and other Chinese brands have been fighting each other until now China's smartphones are in a comprehensive dilemma. Now, Tesla is equivalent to Apple, BYD is a bit like the second brother who was very popular at the time, and Wuling is a bit like the cost-effective Xiaomi .
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Foreign stagnation and domestic electric vehicle bubble
Buffett's retreat from BYD may also have to consider changes in geopolitical and international and domestic environments. From an international perspective, Europe has delayed the need to burn coal by scaling or not carbon neutrality. This situation does not rule out that US stocks will also occur, especially if Trump returns.
From a domestic perspective, the emergence of new energy vehicles in China is inseparable from government subsidies and local governments’ hard work. New energy vehicles are good, but they are good but they don’t make money. BYD made less than 1 billion in the first half of the year with the national subsidies, which is not as good as one-tenth of Pinduoduo. This is like a rich man who raised a son and is getting fatter and he is now 8,209 kilograms, but he just doesn’t make money and doesn’t know how to make money. No matter how rich a local rich man is, he cannot support him for the rest of his life.
Buffett may continue to reduce holdings
BYD ADR leads the decline
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