Stock Portfolio

As Shares Soar, BYD Raises Stock Repurchase Ceiling 33 Percent

(BRK.A), (BRK.B)

The board of Berkshire Hathaway-backed BYD has approved a 33 percent rise in the share price the new energy company can pay to buy back its shares. The company can now pay up to 400 yuan each for shares repurchased from the open market.

At last month’s shareholder meeting, BYD had stated its repurchase ceiling was 300 yuan each as part of the company’s 1.85 billion yuan (US$277 million) stock repurchase plan.

The increase in repurchase price was disclosed in an exchange filing this past Thursday, and comes as BYD’s share price is flirting with a new all-time high that has seen its market value move the company into third place among global automakers ahead of Volkswagen.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares for $232 million. It’s an investment that has paid off handsomely. Berkshire’s original investment of $232 million had grown in value to $7.69 billion as of December 31, 2021.

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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