Leidi.com Lei Jianping April 13
Warren Buffett's Berkshire Hathaway recently reduced its shareholding in BYD again, with an average price of 217.67 Hong Kong dollars, involving 2.48 million shares, and more than 500 million Hong Kong dollars in cash.
Buffett's H-share holdings in BYD dropped from 11.13% to 10.9%.
On January 3, 2023, Berkshire Hathaway also sold about 1.06 million BYD H shares, cashing out about HK$203 million.
At the beginning of February 2023, Berkshire Hathaway reduced its holdings of 1.5545 million shares of BYD, with an average price of 226.32 Hong Kong dollars per share. Based on this calculation, Berkshire Hathaway cashed out 352 million Hong Kong dollars.
Subsequently, Berkshire Hathaway reduced its holdings by 4.235 million shares, with an average price of 257.9 Hong Kong dollars, and cashed out 1.092 billion Hong Kong dollars.
This means that Buffett has accumulated more than 2 billion Hong Kong dollars in cash in 2023.
Buffett signed an agreement with BYD in September 2008 to subscribe for 225 million shares of BYD at a price of HK$8 per share, with a total amount of about HK$1.8 billion.
Over the past 10 years since he became a shareholder of BYD, Buffett has been heavily holding BYD. However, since August 2022, Buffett has changed his routine and continued to reduce his shareholding in BYD, cashing out billions of Hong Kong dollars.
In the third quarter of 2022, Buffett spent US$4.1 billion to buy TSMC, which was also Berkshire Hathaway's most bought stock in the third quarter, making the stock of the world's largest foundry chip maker soar.
But in February 2022, Buffett bought it again at a price of about US$68.5 and sold it at a price of US$74.5, which means that Buffett earned 8.8% on the TSMC project.
Some investment bankers pointed out that Buffett's position changes surprised many people. One is to reduce a large amount of holdings of bank stocks that have persisted for many years, and the other is to sell off TSMC that has not been bought yet.
Recently, Buffett responded by reducing his holdings of BYD and TSMC. He called BYD "extraordinary" and TSMC a "terrific company". That hasn't stopped him from selling shares in both companies.
Buffett also said that after the reduction of BYD, he is not in a hurry to reduce the shareholding. "We'll find better uses for those funds."
Specific to TSMC, it is mainly the influence of geopolitics. "I reevaluated that part, I didn't reevaluate the business, management or anything like that," Buffett noted.
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