Yesterday, the 'Stock God' Buffett reduced shareholding again.$BYD COMPANY (01211.HK)$The news attracted attention from the market. However, the stock price of BYD Company Limited briefly strengthened after a slight decline. As of press time, it fell by 0.17% and was reported at HKD 233.

Regarding the news, according to the Hong Kong Stock Exchange documents, on June 11th, Berkshire Hathaway, a subsidiary of Warren Buffet's company, reduced its holdings of 1.3475 million BYD H-shares, with an average price of HKD 230.46 per share, which totaled approximately HKD 311 million. Its shareholding ratio decreased from 7.02% to 6.9%, with approximately 75.6861 million shares held.

Note: The process of Warren Buffet reducing his shareholding in BYD Company Limited.

From the above chart, we can see that Warren Buffet began reducing his shareholding in BYD Company Limited on August 24th, 2022.

Specifically, on August 24th, 2022, 1.331 million BYD H-shares were reduced, with an average price of HKD 227.10 per share.

On September 1st, 2022, 1.716 million BYD H-shares were reduced, with an average price of HKD 262.72 per share.

On November 1st, 2022, 3.297 million BYD H-shares were reduced, with an average price of HKD 169.86 per share.

On November 8th, 2022, 5.7825 million BYD H-shares were reduced, with an average price of HKD 196.994 per share.

On November 17th, 2022, 3.2255 million BYD H-shares were reduced, with an average price of HKD 195.421 per share.

On December 8th, 2022, 1.3295 million BYD H-shares were reduced, with an average price of HKD 201.343 per share.

On January 3rd, 2023, 1.058 million BYD H-shares were reduced, with an average price of HKD 191.44 per share.

On January 27th, 2023, 1.55 million BYD H-shares were reduced, with an average price of HKD 226.32 per share.

On February 3rd, 2023, 4.235 million BYD H-shares were reduced, with an average price of HKD 257.9 per share.

On March 31st, 2023, 2.48 million BYD H-shares were reduced, with an average price of HKD 217.67 per share.

On May 2nd, 2023, 1.961 million BYD H-shares were reduced, with an average price of HKD 235.64 per share.

On June 19th, 2023, 2.532 million BYD H-shares were reduced, with an average price of HKD 266.85 per share.

On October 25th, 2023, 820,000 BYD H-shares were reduced, with an average price of HKD 245.86 per share.

On June 11th, 2024, 1.347 million BYD H-shares were reduced, with an average price of HKD 230.46 per share.

How much impact will Warren Buffet's reduction of shareholding have on BYD's stock prices?

According to data from the Hong Kong Stock Exchange, Buffett reduced his shareholding in BYD 14 times, half of which took place in 2023, with 6 reductions starting in 2022.

It is worth noting that after Buffett's first reduction on August 24, 2022, BYD's stock price once experienced a large fluctuation. Taking the trend from August 24 to October 28, 2022 as an example, the company fell by a total of 39.30% in 46 trading days.

Note: The trend of BYD from August 24 to October 28, 2022.

However, as time passed, the market gradually became accustomed to Buffett's reduction of BYD shares. In 2023, despite Buffett reducing his stake 7 times, BYD's stock price did not experience large fluctuations.

Note: Performance of BYD's stock price since 2020.

Why did Buffett reduce his stake in BYD?

According to multiple reports, Buffett's reduction of BYD shares may be due to various considerations, including better capital allocation, achieving investment returns, adjusting investment strategies, and possible shifts in company strategic priorities.

Capital allocation: Buffett has stated in public that reducing his stake in BYD is to better allocate capital. This suggests that Buffett may be considering investing in other areas that he believes have more potential or better fit his investment strategy.

Investment returns: Since investing in BYD in 2008, Buffett has achieved a significant growth in BYD's stock price. He may think that now is a suitable time to realize some investment returns.

Adjusting investment strategies: Based on his judgment of market conditions, company performance, or macroeconomic factors, Buffett may have decided to adjust his investment portfolio to adapt to changing market conditions.

Company strategy: Buffett has stated that Berkshire Hathaway wants to focus more on the U.S. market, which may be one of the reasons for reducing its investments in markets outside the U.S., such as BYD.