(BRK.A), (BRK.B)
Berkshire Hathaway-backed BYD’s stock (BYDDF) has been on a tear recently with a 57 percent rise in just under five weeks. The stock hit a low of $18 on May 10, 2021 and has since reached $28.19 on June 14, 2021.
BYD shares had been on a dramatic run in 2020 since rising from only $4.52 on March 20, 2020 to a peak of $35.94 on January 24, 2021. The stock then fell almost 50 percent to its May low.
Now, the stock has regained its momentum at an exciting time for the company.
In May, the one-millionth car, the Han EV, rolled off its production line at BYD’s headquarters and manufacturing facility in Shenzhen, China. And the company recently announced the delivery of the first 100 European-specification BYD Tang SUVs for customers in Norway, which is part of a larger 1,500 cars slated for Norway.
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 has grown in value to $5.897 billion as of December 31, 2020.
© 2021 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.