Berkshire Hathaway-Backed BYD Jumps 11% to All-Time High

(BRK.A), (BRK.B)

Shares of Berkshire Hathaway-backed Chinese battery and vehicle manufacturer BYD Co., Ltd. jumped 11% on Monday to a new all-time high.

BYD’s stock (BYDDF), which had been as low as $4.35 on March 23, closed at $26.38 on Monday.

The stock is up over 400% year-to-date.

A Profitable EV Company

BYD recently reported a strong third quarter with earnings per share skyrocketing 3,000% from the same quarter in 2019 at $0.093 (RMB 0.62).

The company has reported strong sales of its vehicles, including the Han luxury car, which debuted in July.

Han EV’s long-range pure electric version has a single-charge range of 605 kilometers (376 miles) based on the NEDC test cycle.

In other news, BYD recently announced it is furthering its push into the battery-powered commercial truck market with the creation of a new BEV truck company in combination with Hino Motors, Ltd., which is backed by Toyota.

The goal of the new company is to combine the strengths of both companies to develop BEVs and electric units primarily in the Asian market.

The venture plans to initially launch vehicles under the Hino brand in the first half of the 2020s.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares. It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million has grown in value over twenty-fold.

© 2020 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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