After 17 years of investment, Warren Buffett's Berkshire Hathaway has fully divested from Chinese automaker BYD, with the last sale completed recently, marking the end of a highly profitable and closely watched investment.

Buffett initially invested in BYD in September 2008 with $230 million, and during his holding period, the company's stock surged approximately 4,000%, reaching a peak valuation of around $9 billion.

Despite the Chinese market's struggles, BYD's growth made it the world's top-selling EV manufacturer by units, expanding significantly in Europe and capturing market share from Tesla.

Berkshire Hathaway's exit is seen as a sign of shifting strategic priorities and increased caution among Western investors toward Chinese equities, especially amid geopolitical tensions and regulatory uncertainties.

The Chinese EV sector faces severe challenges, including overcapacity, intense price wars, and slowing sales, which have led to BYD experiencing a 30% profit decline in Q2 2025 and revising its sales forecast downward.

In 2025, BYD reported its first quarterly profit decline in over three years, with revenue increasing by 14% but profits dropping nearly 30%, mainly due to lower vehicle prices and market saturation.

Despite these difficulties, BYD continues to grow internationally, with notable success in the UK where August vehicle sales increased by 301% year-on-year, and the company invests heavily in technological innovation.

The company's stock reacted negatively to Buffett's exit, with shares dropping in Hong Kong and Shenzhen, reflecting broader concerns over the Chinese EV market and investor confidence.

Buffett's gradual divestment, which began in 2022, was motivated by a desire to reallocate capital to other investments and concerns over China's 'involution' phenomenon—overcapacity and unsustainable competition.

The departure underscores the broader trend of Western caution toward Chinese tech and EV sectors, with some industry players like Porsche reverting to traditional models amid EV market challenges.

Looking ahead, BYD's future performance will depend on its ability to innovate, adapt to geopolitical and market challenges, and sustain profitability in a highly competitive environment.

This historic exit concludes a chapter of value investing, illustrating lessons in patience and discipline, as BYD transitions from rapid growth to industry consolidation and global expansion.