Buffet like most money managers have a set of rules in place that manages their portfolio's risk. One of those rules is to NOT let any one stock represent more than a certain percentage of their entire portfolio. BYD had increased by 5500% since they originally purchased the stock thus requiring a sell off to keep withoin risk tolerances Cathy Woods has done the same with Tesla
Your point is well taken, but I had noticed that they had almost 40% of the portfolio invested in Apple at the end of '22. So, they break the rules when they are confident that the risk is low. The dangers that Tiawan faces are considerable. As for BYD, he could just be locking in profits as there are other Chinese car makers that are gaining ground on BYD.
I dont think that's true about BH's percentage of holdings in one stock. charlie and warren both said that they dont care for diversity since they believe in the stocks they buy. they manage risk by doing homework and knowing the companies they invest in.
I would buy BYD shares, BYDDY, on the OTC. Pays a decent dividend. Still trading at a discount compared to present value. It's share price would be higher if it were allowed to export to Canada and the USA.
American here. There are a lot of ignorant Americans that are easily manipulated by a lying con man. This is why we have human trash in the White House, and a Corrupt, lying, conspiracy spreading Republican Congress and Senate.
I Brazil there is a large Oligarchy class, very close allied with the US. There are very strong interests to sabotage any chinese success there to the detriment of Brazil but to their own benefit. You can find these kind of people in most countries in the world and they have a lot of power in most of latin america. Cheers from Germany, a country where these traitors rule with impunity...
China government wants to destory all legacy car makers. And you think the other governments should just ignore the threat. China wants to flood with unsustainable EV prices by taking a significant loss on each EV. You are living in a navie reality.
Also, it was a contractor that BYD hired. Should they have been more skeptical or less credulous when procuring. Yes. There is no excuse to ever take anyone's passport off them for example. (There is film of meetings with staff where they mention everything was fine, but confirm the passports/Id taken for 'admin purposes' ) Is 'near slavery conditions' fair way to report this? No. The 'near' is doing a lot of work in that sentence. Would I want to work there, (or any construction site for that matter) no. Are US owned companies better? I doubt it.
I think Buffet simply felt BYD's stock hit a good, high price, and sold off his shares, knowing the company and stock price will continue to grow, but he's very old and pulling back from many stocks.
Buy low, sell high. The investment mantra that the majority of investors never realise. He may know more than we know, but to be honest, I would not blame them for selling when they reach orders of magnitude of profit. An investment needs to vest.
As for quality issues, I don't really see any as I often get Didi and taxis. The quality is very good for all new byd vehicles I sit in. Also byd do most of the electric buses in Shenzhen and they are good quality
You don’t have to apologize for calling some people stupid. It’s a fact some people are. I’m American, but my grandparents are from Italy & Ireland. 90% of the people in the United States are of European descent. We’re just Europeans on a different piece of dirt
Viking you tell it like it is and that makes you a great resource and TH-camr. Obviously you do your best to help fill in the knowledge gaps and that is very valuable to me personally. If any of us say or do anything stupid, we certainly deserve to be called out for it. You did the right thing to clarify not all Americans. I hope those that were upset hear this, and now recognize the meaning of your comments. Moving on to the news about BYD! Thanks.
BYD shares, symbol BYDDY, selling at a discount compared to present value. Buffet is simply worried that Tesla may start a price war with BYD, hence reduced margins.
Maybe the 'inhumane' condition is only a matter of work ethics? Chinese (or Japanese) workers can work 12 to even 16 hours a day, 7 days a week without issues.
what a ridiculous comment. do they have any family or social life? No sane person wants to work that much, they are forced to by the economic conditions. Chinese workers are still heavily exploited in many sectors in China that is a well known fact and not a secret.
@bjb7587 No, that's why I said 'Maybe', not definitive. Coming from a different culture and background, I myself had worked crazy hours (in my younger days) and never questioned nor challenged the employer, always glad to be gainfully (a very subjective adverb) employed.
Loathing in the minds of racist, xenophobic westerners who cannot comprehend or stomach the fact that they r has beens & the rest of the world that they looked down at with contempt is progressing beyond them.
Minor correction on Tesla's average payables. As of Q3-2023 (the latest available) they have an average payables of 62 days. At the worse, back in 2016, it was up to about 93 days. I don't think it ever reached 100 days. This is the average, some were paid sooner and some further out. The vehicle industry average today is about 61 days.
Hmm, BYD car brands needed name change consultancy ? ! WTF ! Per your logic, I wondered why the Japanese car brands kept their brand names as : Suzuki , Kawasaki, Izusu, Toyota (originally Toyoda), Nissan, Honda, Hino, Yamaha, Subaru, on and on etc. And why the Italians never changed the name of Ferarri, Lamborghini ? ! Buddy Holly's friend Ritchie Valens was advised to change his last name from Valenzuela. Leonardo DiCaprio was asked to anglicize his name and he refused. He stated that that was the best decision he had made. Sure, English is the most used language in business and communications today. But is it going to stay the same forever ? French was the most popular language a few centuries ago that even the English Aristocrats and Royal house hold communicated in French. So, here you go ---
Same reason he sold Apple, he is expecting a financial crisis. One that will surpass the GFC, and interest rate are now normalised so that cash pile is earning interest with much less risk. Btw Buffet is overrated, it was Charlie that guided Warren from Benjamin Graham's flawed value teaching. Now that Munger is gone, let see how he performs on his own
I really like hearing Munger, he got Warren to buy quality. Buffets biggest stock fear has got to be a political crisis between us and china that could not end, but half apple's value over night. Getting rid of tsmc, is lowering his other china risk. A war would quickly undermine TSMC and the world's chip supply. Again correlated with china/apple risk. Byd aint the most automated china car maker. big risk is there will be a shakeout in china car companies, and the less automated byd could end up with higher and more hidden cost and debt than the other car makers viking likes, Byd is china risk, plus debt risk plus tesla risk. Buffet has said to never bet against Elon Musk. Don't know how long Buffet will live after losing Munger, don't know how long Buffet has on the planet, and he's not going to mars.
On the Apple front, things don't look to roses. Weak updates, updates that end after for phone is 3 years old. The big fork in the road is Samsung has a close to production Solid State Battery that doubles energy capacity, unless Apple finds an option to that battery, well no more signal.
@@sb5580 the question i have is whether or not Elon is bored of building tesla now and is in cahoots with t rum p (ie. has gov’t backing/support) for his Martian dreams. T rum p stills seems keen to continue destroying the ev industry and backing big oil. So is Elon going to fight for tesla or let it die, along with the ev industry in general?
we make assumptions based on what we know.. but we know by far not enough to make a smart decision in those cases.. so, now we know that Buffet sold a lot of BYD stocks and that is all
I think people doesn't understand Warren Buffet's investment strategy. They don't like Risk. Sure, when Market is up, they earn less. But when Market crashes, they remain stable, and they is why a lot of "older" generation investors put their money into Berkshire. They are happy to make 15% gain anually. But as for BYD's future, is anyone's prediction. There are going to be a lot of competition, and you have world governments pouring money into this fight. No one thought China would be the leader in EV and renewable 15 years ago, I dare not to predict will will happen in 10 years.
On using vendor financing You say BYD is at 270 days. That is very high, but in China and Taiwan big companies drive hard bargains. Formosa Plastics demands 90 days or more. Another technique is to ask for parts consignment. That gives just-in-time access to parts without inventory costs
Buffett has also sold half of Apple, not just BYD. Matter of fact, BYD was never Buffett's investment, it was Charlie Munger's idea. Buffett is an American patriot, he has been wrong about China many times before, as opposed to Munger.
Charlie Munger was the force behind BH investing in BYD while Warren Buffett rather shyaway from investing in BYD. Maybe what happened to Alibaba have something to his stance on BYD
BYD is completing its US$1 billion factory in Indonesia very soon. How come there's no labour problems there while there is accusations in Brazil? Simple. Brazil is a western hemisphere enclave with western thinking without the hindsight of Asian practices. It shouts human rights when its own dismal record in the country is questionable
BYD sells NiMH, Lithium-ion and the NCM batteries. After the Moss Landing Battery Facility fire, I wonder how many NCM batteries are being produced by BYD?
No! your cash which belongs to the banks 😏 At least buy some bonds with your cash: - it is protected - and you can earn at least 4.5% per year... Better than zero.
Buffett sold Apple, too; he is not taking geopolitical risks like TSMC because it is located in Taiwan. Big funds like his can't afford value difference between the US and China. In 2024, according to Google search - despite once calling Apple the "best business" in the world, Buffett sold 100 million shares in the third quarter, cutting Berkshire's stake by 25%. While Apple still ranked as the company's largest holding as of Sept. 30, Buffett has sold more than 615 million shares in the last four quarters.
I think there is concern that BYD needs to address quality control issues with their vehicles, especially their small to medium sized EV's. I still think in the long run, BYD would be better off as a battery supplier, especially if they, like CATL, achieve breakthroughs in solid-state batteries in the next few years.
Dave we need you. The level of misrepresentation from our media reflecting their supporters short term interests and the ability of mouths to offer opinions without research is huge. As Richard Dawkins reflects “don’t tell me what you think or how you feel, just tell me the facts”.
I thought it was Li Liu who introduced Munger, ok, yes the second time you mention it, he runs Himalayan Capital. But he was a survivor of the Tiennamen massacre. He is usually referred to as Chinese. I have never heard him labeled "Taiwanese" before.
@MichaelNomura-i9n I'm not criticising the cars. Historically however Daewoo first took the market by storm, and then just as rapidly became Dae-who? They vanished as quickly as they came, and not because they rebranded as Chevrolet.
I heard an interview with Warren himself, a long time ago, in which he said that he would not like to be positioned in any company that competed with Elon Musk.
@@Stoneitful Maybe he does but he also understands Musk has always been under large support from the biggest and baddest national state in the world (and I don't mean it in a good or bad way).
Don’t think tesla even has a stake in Asia or southern hemisphere to be considered competition. Honda and Toyota are more likely the competitors than tesla? Northern north america is off the table, but that merely because of protectionism… otherwise tesla would certainly disappear completely. Besides i don’t think Elon cares that much about tesla anymore and is probably far more interested in his Martian dreams these days-which align with t rum p and big oil… Mr t will likely print unlimited dollars for musk-especially if he lets tesla go-and focusses on space.
Secondary point being that t rum p would happily destroy the green revolution and specifically the ev industry given the chance… and that seems largely dependent on Elon… and yet Elon’s Martian dream is largely dependent on t rum p.
I wanted to buy a BYD Dolphin, but they're all sold out in my country and the dealers don't know when they'll be getting more. Certainly not in the next 6 months, they say. Possibly not before next year.
as to the brazil comment. Brazil is part of BRICS. BYD's sales in Brazil in 2024 were a record-breaking 76,713 vehicles, a 327.68% increase from 2023. This made BYD the leader in Brazil's electrified vehicle market.
We simply HAVE to assume that BYD will be hit by additional tariffs at some point from the US and probably the EU as Germany scrambles to save its industry. The industry is in a fascinating transition right now and this situation will have to settle at some point. Inevitably someone(s) will deliver a battery that is better and cheaper than their competitors and become a major supplier just as Honda supplied engines to multiple manufacturers...and then many companies will simply build a chassis or even just the brand...assuming they survive. At what point does the influx of cash into new car companies dry up? And bear in mind that many of these EVs are still running on coal and doing virtually nothing to reduce emissions.
Biggest is always the best TEV! You sell high buy low to max profit, with all the other major players in the auto market they have a lot of upside to their valuations over the next 5 years than BYD. With the trade wars starting out is the perfect time to pull from BYD as China's economy is also experiencing economic challenges! It'll be great if Buffet took those profits and reinvested into a made in democracy automotive company 🤙👊🤙
Viking if you watched tv in the 90's and 00's there was a show called Beyond 2000. They had a story on BYD back then and from memory, they were talking electric cars. I cant find the clip[ on youtube, it would have been nice to refresh my memory and see how far they have come and what they said has come true. If anyone has a link to the show with this story would love to see it again
Warren Buffett in the 80s, 90s was in a complete other state with his companies as he is today. Maybe the time back then, he couldn't go for safety in investments. That was the reason to go in risk. But risk is about probabilities and not about knowledge. He might have been really lucky the time back then.
You buy shares to make a profit. Buffet saw a good manufacturing company, invested and sold shares and collected profit and kept there initial cash value still invested. That’s how it works, if BYD is going to tank he would have cashed out completely.
Alot info is nailing it and nailing it good so what I take on Warren's moves is a rough ride is coming to America and then shortly thereafter the rest of automobile manufacturering on planet earth except just maybe tesla so ice fans the picture is not roses just as the bowling ball comes down the lane it does not have crash avoidance on the way to pins .
Back in those years if you weren’t getting 20%+ returns in capital investment funds there was something wrong. Real inflation was rampant around the world for decades that was the reason for high return numbers. Macquarie Capital reputation was built from those early years.
While we Americans sit here transfixed by sound of the burning rubber of an orange dragster's tires, the rest of the world is slipping away from US into the future.
One reason Buffet sold a large part of his stake in Apple was because the maximum capital gains tax rate is now 21% and he thinks it could go up. So better to sell some stock now and pay the lower tax rate. This does not detract from anything you said but rather adds to it. Speaking of not consulting marketing experts, there used to be a Chinese restaurant called "King Dong". I could never bring myself to eat there. One more thing, TSNC is building a plant in Arizona.
BYD stock price has not changed much while the company has transformed from an unknown to the top 1 EV maker since 2021. BYD is controlled by a group engineers. They have their vision, and they are not influenced by the Wall Street.
Indian government has rejected BYD's investment before, it could've had created thousands of jobs, so why did they do that? Could Brazil also have the same intention? We still have to hear it from the BYD side, it's unfair to just hear it from one side.
@@TVwatcher-ic3ne What do u mean? Ever heard of Troller and Agrale? Both r Brazilian auto brands. It could also be other foreign brands behind the smear campaign against Chinese auto brands, u never know.
Buffet knows where to put the big chunk of the money, in the American health care BUSINESS, through insurance companies, it's a no brainer, totally protected by both parties, free and universal health care will never happen!
I would have liked to have seen an Apple Car - what its call isn’t so important, even if it was a collaboration with a good automaker, wherever that be. We would have good privacy and very likely reliable software.
I think the more complicated names were intended to sell only in China So Yangwang and Fengchengbao are for local customer in China Geely Zeekr Volvo Lotus Deepal Ora Chery GWM BYD for foreign buyers. Easy words to say for western people
Buffet knows that American and European politicians are going to slam the doors on BYD as they are basically a trojan horse company. There is zero data on BYD long-term quality. People thought Hyundai and Kia were amazing and now we know now their engines are faulty garbage. Mechanics say even the high end Genesis is all hype and they are not going last more than 120-150K.
Hard to argue with Buffett's history of eyepopping successes, so if he sells any company, it's wise to take deep dives into his thinking. At first I scoffed at Buffett's move, but after seeing this video on his reasons, I think he's not wrong and BYD stock owners ought to at least seriously consider Buffett's reasons.
I'm not sure Buffet is "dumping" BYD shares. I suspect its more strategic. I think he's just cashing up ahead of the long-predicted market fall which has been forecast in the next five years - so that BH has plenty of cash on hand when the time comes. Meanwhile BH will retain a lot of the BYD shares - although I expect Buffet will sell off a few more yet...masybe down to 25% of its original stake.
I find it odd that byd doesn't trade on the real markets in the US market like the NASDAQ where no trades . They trade where penny stocks live int the over the counter trades. This is also a place where bankrupt stocks go to die . It's probably because they don't want to provide company information that is required by the more popular and regulated exchanges .
It's about bloody time someone lifted the hood on BYD corporate and showed us the warts. These can fairly be explained as growing pains in a rapidly changing global business climate but they do exist and denying them is dishonest. That said, they're all problems that come from massive growth and as such they're problems that GM, Ford and Toyota would dearly love to have!
BYD's debt-to-equity ratio is still less than 0.4, which is less than Tesla's 0.7 and Ford's 3.59. Buffett probably concerns about the trade war between US and China could adversely affect the future of BYD. Moreover, BYD is not Coca Cola.
I honestly believe they sold the stock for the same reason they sold apple, taxes. warren believes that taxes have no choice but to go up due to the extreme debt of the US.
People who say EVs are bad for the environment are stupid? Well, they do have some evidence as justification and calling them stupid isn't really a good counter argument. As for Buffet - he's good a good track record so he's probably on to something.
BYD's profits and margins are very poor when compared to TSMC. If Buffet did not hold on to TSMC, there is really no reason to keep BYD in its portfolio
Berkshire Hathaway invested early and made huge profits However, its been trading between $HK320 and HK$150 since early 2021 So the stock price is similar to 4 years ago no growth only good for longer short/medium term swing trading If BM invests it wants either good dividends or share price growth and Warren doesn’t really like tech stocks. He prefers insurance companies and banks He didn’t invest in Tesla and he and Munger (dec’d) admits he missed that one because of their reticence towards tech companies at the time Tech has a lot of volatility which traditional investors like Buffet try to avoid. They just want strong profits and gains, strong dividends and minimal risk as well as a dead cert
Slavery in Brazil. Totally true. And BYD denied with idiot excuses. This is absolutely incredible, BYD totally ignoring national legislation in Brazil, in the worst possible way. Together with the other points (hidden debt, uncertainty with sell areas, etc.) BYD clearly demonstrate lack of basical etics. So why should I by a BYD car when I cannot trust this company? Maybe next year they decide not to guarantee it as promised, or maybe they stop official maintenance services on some models or brand....
Sanctions and US image is a big thing - Warren being seen as a Chinese supporter would make him a target and where sanctions go is a big roll of the dice ?
I remember having seen a video here in TH-cam several years from from a Tesla employee reporting Slavery work conditions that had wrecked his mental health. So, make your own conclusions.
Buffet like most money managers have a set of rules in place that manages their portfolio's risk.
One of those rules is to NOT let any one stock represent more than a certain percentage of their entire portfolio.
BYD had increased by 5500% since they originally purchased the stock thus requiring a sell off to keep withoin risk tolerances
Cathy Woods has done the same with Tesla
Your point is well taken, but I had noticed that they had almost 40% of the portfolio invested in Apple at the end of '22. So, they break the rules when they are confident that the risk is low. The dangers that Tiawan faces are considerable. As for BYD, he could just be locking in profits as there are other Chinese car makers that are gaining ground on BYD.
I dont think that's true about BH's percentage of holdings in one stock. charlie and warren both said that they dont care for diversity since they believe in the stocks they buy. they manage risk by doing homework and knowing the companies they invest in.
I would buy BYD shares, BYDDY, on the OTC. Pays a decent dividend. Still trading at a discount compared to present value.
It's share price would be higher if it were allowed to export to Canada and the USA.
Yank here. To call us stupid is an insult to stupid people
At least Americans have a sense of humour, told South Africans, Italian or Germans and they get aggressive and violent
Yank Wank !!!!
wrg
American here. There are a lot of ignorant Americans that are easily manipulated by a lying con man. This is why we have human trash in the White House, and a Corrupt, lying, conspiracy spreading Republican Congress and Senate.
Why so self-deprecating? That's so...un-American, lol.
I Brazil there is a large Oligarchy class, very close allied with the US. There are very strong interests to sabotage any chinese success there to the detriment of Brazil but to their own benefit. You can find these kind of people in most countries in the world and they have a lot of power in most of latin america. Cheers from Germany, a country where these traitors rule with impunity...
wr
China government wants to destory all legacy car makers. And you think the other governments should just ignore the threat. China wants to flood with unsustainable EV prices by taking a significant loss on each EV. You are living in a navie reality.
Say what? What are you on about? Somebody is a “traitor” bc they have a position on a trade issue?
Also, it was a contractor that BYD hired. Should they have been more skeptical or less credulous when procuring. Yes. There is no excuse to ever take anyone's passport off them for example. (There is film of meetings with staff where they mention everything was fine, but confirm the passports/Id taken for 'admin purposes' )
Is 'near slavery conditions' fair way to report this? No. The 'near' is doing a lot of work in that sentence.
Would I want to work there, (or any construction site for that matter) no.
Are US owned companies better? I doubt it.
Only in democratic countries!
I think Buffet simply felt BYD's stock hit a good, high price, and sold off his shares, knowing the company and stock price will continue to grow, but he's very old and pulling back from many stocks.
Buy low, sell high. The investment mantra that the majority of investors never realise.
He may know more than we know, but to be honest, I would not blame them for selling when they reach orders of magnitude of profit.
An investment needs to vest.
wr
@@zes7215 what does ‘wr’ mean?
As for quality issues, I don't really see any as I often get Didi and taxis. The quality is very good for all new byd vehicles I sit in. Also byd do most of the electric buses in Shenzhen and they are good quality
You don’t have to apologize for calling some people stupid. It’s a fact some people are. I’m American, but my grandparents are from Italy & Ireland. 90% of the people in the United States are of European descent. We’re just Europeans on a different piece of dirt
Remember when Amazon was nothing but high debt for over a decade.
Shush 🤫. Don’t tell anyone BYD is like Amazon and Tesla is like Apple 🙂
BYD - thanks for the free feedback (R&D) they'll work on the uneven quality issues.
Viking you tell it like it is and that makes you a great resource and TH-camr. Obviously you do your best to help fill in the knowledge gaps and that is very valuable to me personally. If any of us say or do anything stupid, we certainly deserve to be called out for it. You did the right thing to clarify not all Americans. I hope those that were upset hear this, and now recognize the meaning of your comments. Moving on to the news about BYD! Thanks.
BYD shares, symbol BYDDY, selling at a discount compared to present value. Buffet is simply worried that Tesla may start a price war with BYD, hence reduced margins.
A friend bought a BYD car years ago & explained his choice of brand. They're selling more than others.
Buy low, sell high.
Energy density progress is really encouraging.
Maybe the 'inhumane' condition is only a matter of work ethics?
Chinese (or Japanese) workers can work 12 to even 16 hours a day, 7 days a week without issues.
dunno about China, but people in Japan and Korea die because of working too much. look up "karoshi"
what a ridiculous comment. do they have any family or social life? No sane person wants to work that much, they are forced to by the economic conditions. Chinese workers are still heavily exploited in many sectors in China that is a well known fact and not a secret.
Have you ever asked those workers whether they like these conditions?
@bjb7587 No, that's why I said 'Maybe', not definitive. Coming from a different culture and background, I myself had worked crazy hours (in my younger days) and never questioned nor challenged the employer, always glad to be gainfully (a very subjective adverb) employed.
Hyundai (the name) used to draw the same loathing as Yangwang does. Now it (Hyundai) is a household name.
Loathing in the minds of racist, xenophobic westerners who cannot comprehend or stomach the fact that they r has beens & the rest of the world that they looked down at with contempt is progressing beyond them.
They'll be more household, when they build small EVs in the USA.
Personally I would find it difficult to buy a car with a name like this.... 😏
You'll notice they never pulled the names Pony and Stellar out of mothballs.
BYD will be a worldwide brand even without US &European market. This is fact period
Minor correction on Tesla's average payables. As of Q3-2023 (the latest available) they have an average payables of 62 days. At the worse, back in 2016, it was up to about 93 days. I don't think it ever reached 100 days. This is the average, some were paid sooner and some further out. The vehicle industry average today is about 61 days.
Hmm, BYD car brands needed name change consultancy ? ! WTF ! Per your logic, I wondered why the Japanese car brands kept their brand names as : Suzuki , Kawasaki, Izusu, Toyota (originally Toyoda), Nissan, Honda, Hino, Yamaha, Subaru, on and on etc. And why the Italians never changed the name of Ferarri, Lamborghini ? !
Buddy Holly's friend Ritchie Valens was advised to change his last name from Valenzuela. Leonardo DiCaprio was asked to anglicize his name and he refused. He stated that that was the best decision he had made. Sure, English is the most used language in business and communications today. But is it going to stay the same forever ? French was the most popular language a few centuries ago that even the English Aristocrats and Royal house hold communicated in French. So, here you go ---
Same reason he sold Apple, he is expecting a financial crisis. One that will surpass the GFC, and interest rate are now normalised so that cash pile is earning interest with much less risk. Btw Buffet is overrated, it was Charlie that guided Warren from Benjamin Graham's flawed value teaching. Now that Munger is gone, let see how he performs on his own
Munger was a hack!
I really like hearing Munger, he got Warren to buy quality. Buffets biggest stock fear has got to be a political crisis between us and china that could not end, but half apple's value over night. Getting rid of tsmc, is lowering his other china risk. A war would quickly undermine TSMC and the world's chip supply. Again correlated with china/apple risk. Byd aint the most automated china car maker. big risk is there will be a shakeout in china car companies,
and the less automated byd could end up with higher and more hidden cost and debt than the other car makers
viking likes, Byd is china risk, plus debt risk plus tesla risk. Buffet has said to never bet against Elon Musk.
Don't know how long Buffet will live after losing Munger, don't know how long Buffet has on the planet, and he's not going to mars.
wr
On the Apple front, things don't look to roses. Weak updates, updates that end after for phone is 3 years old. The big fork in the road is Samsung has a close to production Solid State Battery that doubles energy capacity, unless Apple finds an option to that battery, well no more signal.
@@sb5580 the question i have is whether or not Elon is bored of building tesla now and is in cahoots with t rum p (ie. has gov’t backing/support) for his Martian dreams. T rum p stills seems keen to continue destroying the ev industry and backing big oil. So is Elon going to fight for tesla or let it die, along with the ev industry in general?
we make assumptions based on what we know.. but we know by far not enough to make a smart decision in those cases.. so, now we know that Buffet sold a lot of BYD stocks and that is all
Li Lu was mainland China born, not Taiwan. Suspect he's American now
I think people doesn't understand Warren Buffet's investment strategy. They don't like Risk. Sure, when Market is up, they earn less. But when Market crashes, they remain stable, and they is why a lot of "older" generation investors put their money into Berkshire. They are happy to make 15% gain anually.
But as for BYD's future, is anyone's prediction. There are going to be a lot of competition, and you have world governments pouring money into this fight. No one thought China would be the leader in EV and renewable 15 years ago, I dare not to predict will will happen in 10 years.
On using vendor financing
You say BYD is at 270 days. That is very high, but in China and Taiwan big companies drive hard bargains. Formosa Plastics demands 90 days or more. Another technique is to ask for parts consignment. That gives just-in-time access to parts without inventory costs
Buffett has also sold half of Apple, not just BYD. Matter of fact, BYD was never Buffett's investment, it was Charlie Munger's idea. Buffett is an American patriot, he has been wrong about China many times before, as opposed to Munger.
Secured my $ADX in the Adaxum presale. LFG!!!!!!
Charlie Munger was the force behind BH investing in BYD while Warren Buffett rather shyaway from investing in BYD. Maybe what happened to Alibaba have something to his stance on BYD
That man is not a Taiwanese, he is just one of the student leaders who have run out of China in political reform.
BYD is completing its US$1 billion factory in Indonesia very soon. How come there's no labour problems there while there is accusations in Brazil?
Simple. Brazil is a western hemisphere enclave with western thinking without the hindsight of Asian practices. It shouts human rights when its own dismal record in the country is questionable
Brazil came from Europe doesn't like Asian peoples
If i remember the reason for sale was geopolitical... Its was US backed Tesla and China backed BYD....
BYD sells NiMH, Lithium-ion and the NCM batteries. After the Moss Landing Battery Facility fire, I wonder how many NCM batteries are being produced by BYD?
If they’re smart…. None!
The founder and chairman of Himalaya Capital is Li Lu, who was born in China and emigrated to the US after Tiananmen. He is not Taiwanese.
Cash is king
No! your cash which belongs to the banks 😏
At least buy some bonds with your cash:
- it is protected
- and you can earn at least 4.5% per year... Better than zero.
Buffett sold Apple, too; he is not taking geopolitical risks like TSMC because it is located in Taiwan. Big funds like his can't afford value difference between the US and China.
In 2024, according to Google search - despite once calling Apple the "best business" in the world, Buffett sold 100 million shares in the third quarter, cutting Berkshire's stake by 25%. While Apple still ranked as the company's largest holding as of Sept. 30, Buffett has sold more than 615 million shares in the last four quarters.
I think there is concern that BYD needs to address quality control issues with their vehicles, especially their small to medium sized EV's. I still think in the long run, BYD would be better off as a battery supplier, especially if they, like CATL, achieve breakthroughs in solid-state batteries in the next few years.
Berkshire Hathaway' cannot beat the Market anymore. His Golden years are over unfortunately.
Dave we need you. The level of misrepresentation from our media reflecting their supporters short term interests and the ability of mouths to offer opinions without research is huge. As Richard Dawkins reflects “don’t tell me what you think or how you feel, just tell me the facts”.
I thought it was Li Liu who introduced Munger, ok, yes the second time you mention it, he runs Himalayan Capital. But he was a survivor of the Tiennamen massacre. He is usually referred to as Chinese. I have never heard him labeled "Taiwanese" before.
There was no massacre... WTF r u talking about. So westerners live in an alternate universe of stupidity & ignorance
If you say that something is true, then we MUST have proof. You did not supply any proof on the China/Brazil story. Thanks.
I've long suspected that there might be another side to things. Do you remember Daewoo back in the 90s???
I own a 2007 Chevrolet Aveo.
@MichaelNomura-i9n I'm not criticising the cars. Historically however Daewoo first took the market by storm, and then just as rapidly became Dae-who? They vanished as quickly as they came, and not because they rebranded as Chevrolet.
I heard an interview with Warren himself, a long time ago, in which he said that he would not like to be positioned in any company that competed with Elon Musk.
But he hates tesla and elon musk 😂
@@Stoneitful Maybe he does but he also understands Musk has always been under large support from the biggest and baddest national state in the world (and I don't mean it in a good or bad way).
Don’t think tesla even has a stake in Asia or southern hemisphere to be considered competition. Honda and Toyota are more likely the competitors than tesla? Northern north america is off the table, but that merely because of protectionism… otherwise tesla would certainly disappear completely. Besides i don’t think Elon cares that much about tesla anymore and is probably far more interested in his Martian dreams these days-which align with t rum p and big oil… Mr t will likely print unlimited dollars for musk-especially if he lets tesla go-and focusses on space.
Secondary point being that t rum p would happily destroy the green revolution and specifically the ev industry given the chance… and that seems largely dependent on Elon… and yet Elon’s Martian dream is largely dependent on t rum p.
My first (main) point got axed… surprise surprise 🎉
Buffett knows a clasped of the world stock market.
I wanted to buy a BYD Dolphin, but they're all sold out in my country and the dealers don't know when they'll be getting more. Certainly not in the next 6 months, they say. Possibly not before next year.
The Adaxum presale is moving fast! Don’t miss the chance to secure your tokens before the bonuses run out.
as to the brazil comment. Brazil is part of BRICS.
BYD's sales in Brazil in 2024 were a record-breaking 76,713 vehicles, a 327.68% increase from 2023. This made BYD the leader in Brazil's electrified vehicle market.
We simply HAVE to assume that BYD will be hit by additional tariffs at some point from the US and probably the EU as Germany scrambles to save its industry.
The industry is in a fascinating transition right now and this situation will have to settle at some point. Inevitably someone(s) will deliver a battery that is better and cheaper than their competitors and become a major supplier just as Honda supplied engines to multiple manufacturers...and then many companies will simply build a chassis or even just the brand...assuming they survive.
At what point does the influx of cash into new car companies dry up? And bear in mind that many of these EVs are still running on coal and doing virtually nothing to reduce emissions.
They know what they're doing. 4 different new brands is nothing for a market of billions
Brazil also has its own auto companies, I'm pretty sure they wouldn't wanna compete against the Chinese auto makers😁
I'm impressed with your honesty.
Biggest is always the best TEV! You sell high buy low to max profit, with all the other major players in the auto market they have a lot of upside to their valuations over the next 5 years than BYD. With the trade wars starting out is the perfect time to pull from BYD as China's economy is also experiencing economic challenges!
It'll be great if Buffet took those profits and reinvested into a made in democracy automotive company
🤙👊🤙
Ford used to be vertically integrated.
Viking if you watched tv in the 90's and 00's there was a show called Beyond 2000. They had a story on BYD back then and from memory, they were talking electric cars.
I cant find the clip[ on youtube, it would have been nice to refresh my memory and see how far they have come and what they said has come true.
If anyone has a link to the show with this story would love to see it again
good one
I appreciate the honesty 🙏
Warren Buffett in the 80s, 90s was in a complete other state with his companies as he is today.
Maybe the time back then, he couldn't go for safety in investments. That was the reason to go in risk. But risk is about probabilities and not about knowledge. He might have been really lucky the time back then.
No li Lu is Chinese mainland Chinese
You buy shares to make a profit. Buffet saw a good manufacturing company, invested and sold shares and collected profit and kept there initial cash value still invested. That’s how it works, if BYD is going to tank he would have cashed out completely.
Alot info is nailing it and nailing it good so what I take on Warren's moves is a rough ride is coming to America and then shortly thereafter the rest of automobile manufacturering on planet earth except just maybe tesla so ice fans the picture is not roses just as the bowling ball comes down the lane it does not have crash avoidance on the way to pins .
He is going to buy Rivian heavy next . 🤞
Adaxum's presale is attracting attention from investors looking for projects with real-world applications and growth potential.
Does anyone know how much profit r they making per car? Or what is their debt to profit ratio?
Back in those years if you weren’t getting 20%+ returns in capital investment funds there was something wrong. Real inflation was rampant around the world for decades that was the reason for high return numbers. Macquarie Capital reputation was built from those early years.
While we Americans sit here transfixed by sound of the burning rubber of an orange dragster's tires, the rest of the world is slipping away from US into the future.
One reason Buffet sold a large part of his stake in Apple was because the maximum capital gains tax rate is now 21% and he thinks it could go up. So better to sell some stock now and pay the lower tax rate. This does not detract from anything you said but rather adds to it. Speaking of not consulting marketing experts, there used to be a Chinese restaurant called "King Dong". I could never bring myself to eat there. One more thing, TSNC is building a plant in Arizona.
BYD stock price has not changed much while the company has transformed from an unknown to the top 1 EV maker since 2021. BYD is controlled by a group engineers. They have their vision, and they are not influenced by the Wall Street.
Just balancing their portfolio.
I think it's mostly because LFP is a broad technical wrong turn
I get it now. You are a BYD employee. Why did it take so long for me to figure it out. You gloss over the negative and laude the positives.
Indian government has rejected BYD's investment before, it could've had created thousands of jobs, so why did they do that? Could Brazil also have the same intention? We still have to hear it from the BYD side, it's unfair to just hear it from one side.
Brazil doesn’t have a Tata or Mahindra to protect.
Indian is very protective of their own manufacturers
@@TVwatcher-ic3ne What do u mean? Ever heard of Troller and Agrale? Both r Brazilian auto brands. It could also be other foreign brands behind the smear campaign against Chinese auto brands, u never know.
@ How do u know Brazil isn't?
Their record speaks for itself
Benefits of people burying their heads in the sands bottom in the air = somewhere to park your bike be it electric or not .
Buffet knows where to put the big chunk of the money, in the American health care BUSINESS, through insurance companies, it's a no brainer, totally protected by both parties, free and universal health care will never happen!
The strategic partnerships being formed by Adaxum are strengthening its position in the blockchain and e-commerce industries.
I think the smartest thing is to invest in presales like Adaxum, that will launch in following months and catch the peak of the cycle.
Anyone else noticing how quiet Adaxum token is flying under the radar? Don´t miss it.
I would have liked to have seen an Apple Car - what its call isn’t so important, even if it was a collaboration with a good automaker, wherever that be. We would have good privacy and very likely reliable software.
I think the more complicated names were intended to sell only in China
So Yangwang and Fengchengbao are for local customer in China
Geely Zeekr Volvo Lotus Deepal Ora Chery GWM BYD for foreign buyers. Easy words to say for western people
Buffet knows that American and European politicians are going to slam the doors on BYD as they are basically a trojan horse company. There is zero data on BYD long-term quality. People thought Hyundai and Kia were amazing and now we know now their engines are faulty garbage. Mechanics say even the high end Genesis is all hype and they are not going last more than 120-150K.
Adaxum token is a rare gem in the presale market. Alts are heating up, and this project looks poised for success!
Hard to argue with Buffett's history of eyepopping successes, so if he sells any company, it's wise to take deep dives into his thinking. At first I scoffed at Buffett's move, but after seeing this video on his reasons, I think he's not wrong and BYD stock owners ought to at least seriously consider Buffett's reasons.
Buffet is also selling Apple.
I'm not sure Buffet is "dumping" BYD shares. I suspect its more strategic. I think he's just cashing up ahead of the long-predicted market fall which has been forecast in the next five years - so that BH has plenty of cash on hand when the time comes. Meanwhile BH will retain a lot of the BYD shares - although I expect Buffet will sell off a few more yet...masybe down to 25% of its original stake.
I find it odd that byd doesn't trade on the real markets in the US market like the NASDAQ where no trades . They trade where penny stocks live int the over the counter trades. This is also a place where bankrupt stocks go to die . It's probably because they don't want to provide company information that is required by the more popular and regulated exchanges .
Berkshire Hathaway is increasingly becoming a Big Oil company, investing $billions and $billions in Occidental Petroleum and Chevron.
BYD passenger cars will not enter the US car market. So he can't see both its success and its failure.
I usually don’t jump into new projects, but after seeing the potential with Adaxum, I’m in. Time to diversify my portfolio!
Another insightful video Sam thank you
Lol, what was insightful about it? No industry or business knowledge, just his (biased) opinion
That's right. He provided no proof.@@DaveG7920
I don’t think the Viking has any idea what is going on around the world economically,he is so focused on EVs it has blinded him of reality.
I’ve sent a text to Mr Buffet telling him that The Electric Viking says you made a big mistake.
It's about bloody time someone lifted the hood on BYD corporate and showed us the warts. These can fairly be explained as growing pains in a rapidly changing global business climate but they do exist and denying them is dishonest. That said, they're all problems that come from massive growth and as such they're problems that GM, Ford and Toyota would dearly love to have!
BYD's debt-to-equity ratio is still less than 0.4, which is less than Tesla's 0.7 and Ford's 3.59. Buffett probably concerns about the trade war between US and China could adversely affect the future of BYD. Moreover, BYD is not Coca Cola.
He is scared about the war and the fact that Chinese companies do not rely on the stock market.
Canada and the USA have effectively banned the import of Chinese EVs, not so much in Europe, Latin America and Australia.
I honestly believe they sold the stock for the same reason they sold apple, taxes. warren believes that taxes have no choice but to go up due to the extreme debt of the US.
People who say EVs are bad for the environment are stupid? Well, they do have some evidence as justification and calling them stupid isn't really a good counter argument.
As for Buffet - he's good a good track record so he's probably on to something.
Sam, Berkshire is far more than primarily Apple.
BYD's profits and margins are very poor when compared to TSMC. If Buffet did not hold on to TSMC, there is really no reason to keep BYD in its portfolio
Berkshire Hathaway invested early and made huge profits
However, its been trading between $HK320 and HK$150 since early 2021
So the stock price is similar to 4 years ago no growth only good for longer short/medium term swing trading
If BM invests it wants either good dividends or share price growth and Warren doesn’t really like tech stocks. He prefers insurance companies and banks
He didn’t invest in Tesla and he and Munger (dec’d) admits he missed that one because of their reticence towards tech companies at the time
Tech has a lot of volatility which traditional investors like Buffet try to avoid. They just want strong profits and gains, strong dividends and minimal risk as well as a dead cert
Slavery in Brazil. Totally true. And BYD denied with idiot excuses. This is absolutely incredible, BYD totally ignoring national legislation in Brazil, in the worst possible way.
Together with the other points (hidden debt, uncertainty with sell areas, etc.) BYD clearly demonstrate lack of basical etics.
So why should I by a BYD car when I cannot trust this company? Maybe next year they decide not to guarantee it as promised, or maybe they stop official maintenance services on some models or brand....
Sanctions and US image is a big thing - Warren being seen as a Chinese supporter would make him a target and where sanctions go is a big roll of the dice ?
I remember having seen a video here in TH-cam several years from from a Tesla employee reporting Slavery work conditions that had wrecked his mental health. So, make your own conclusions.
I’m American, and I’m stupid. Everyone is pretty stupid.