According to the latest disclosed documents, Berkshire Hathaway Inc., under the leadership of Warren Buffett, recently reduced its shareholding of H shares and cashed out more than 0.3 billion Hong Kong dollars, reducing its shareholding from 5.06% to 4.94%. It is worth noting that since June, Berkshire Hathaway has reduced its shareholding in BYD H shares several times, but it has not affected the stock price of BYD, which has continued to oscillate and climb. In addition, Buffett’s recent reduction of Bank of America has also attracted the attention of the public. From July 17th to 19th local time, Berkshire Hathaway sold a total of 33.89 million shares, worth approximately 1.476 billion U.S. dollars. $BYD COMPANY (01211.HK)$Reducing shareholding of BYD According to the Hong Kong Stock Exchange, Berkshire Hathaway under Warren Buffett reduced its shareholding of BYD H shares by 1.3955 million shares on July 16, and the selling price per share was approximately HKD 246.96, totaling approximately HKD 0.345 billion in cash. After this reduction, the shareholding proportion of Berkshire Hathaway in BYD H shares has been reduced from 5.06% to 4.94%. After this reduction, Berkshire Hathaway still holds 54.2 million BYD H shares, and these stocks are worth more than 13.3 billion Hong Kong dollars at the latest stock price of 246 Hong Kong dollars per share.

This also means that between June 11th and July 16th, Berkshire Hathaway accumulated a total reduction of 22.83 million shares of BYD H shares. According to publicly available information, in 2008, Berkshire Hathaway bought 0.225 billion shares of BYD H shares at a price of HKD 8 per share, holding it for 14 years until it began to reduce its holdings for the first time in August 2022. This means that Berkshire Hathaway has sold more than 0.17 billion shares of BYD H shares, and the reduction has exceeded 70%. However, it should be pointed out that Berkshire Hathaway’s reduction since June has not affected the stock price of BYD. Data shows that from June 11th to July 22nd, BYD H shares climbed steadily, with a cumulative increase of nearly 10%, and the latest market value was 797 billion Hong Kong dollars.

When the major shareholder increases or reduces the number of shares it holds, it only needs to be disclosed when it reaches a certain integer percentage. The last time Berkshire Hathaway disclosed the information of reducing its holdings of BYD was on June 25th. At that time, the Hong Kong Stock Exchange documents showed that Berkshire Hathaway sold 2.0175 million shares of BYD H shares on June 19th, and the average transaction price was HKD 234.57 per share. After the reduction, Berkshire Hathaway's shareholding proportion decreased from 6.18% to 5.99%, and the number of shares held decreased to 65.8531 million. In addition, on June 17th, data disclosed by the Hong Kong Stock Exchange showed that on June 11th, Berkshire Hathaway reduced its shareholding of BYD H shares by 1.3475 million shares, with an average selling price of HKD 230.46 per share and a sales amount of HKD 0.31 billion. After this reduction, the shareholding ratio of Berkshire Hathaway was reduced from 7.02% to 6.9%, and the number of shares held decreased to 75.6861 million.$Bank of America (BAC.US)$In addition, there have been analysts in the brokerage industry who stated that when Buffett began to reduce his holdings of BYD in 2022, the news had a relatively large impact on the market, but after multiple reductions, the news of Buffett's reduction has had less and less impact on the market. Buffett's shareholding ratio in BYD is also getting lower and lower. For the value analysis of BYD, investors should return to the judgment of the fundamentals.

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According to the documents of the Hong Kong Stock Exchange, Berkshire Hathaway under Warren Buffett reduced its shareholding of BYD H shares by 1.3955 million shares on July 16, and the selling price per share was approximately HKD 246.96, totaling approximately HKD 0.345 billion in cash. After this reduction, the shareholding proportion of Berkshire Hathaway in BYD H shares has been reduced from 5.06% to 4.94%.

After this reduction, Berkshire Hathaway still holds 54.2 million BYD H shares, and these stocks are worth more than 13.3 billion Hong Kong dollars at the latest stock price of 246 Hong Kong dollars per share.

When the major shareholder increases or reduces the number of shares it holds, it only needs to be disclosed when it reaches a certain integer percentage. The last time Berkshire Hathaway disclosed the information of reducing its holdings of BYD was on June 25th. At that time, the Hong Kong Stock Exchange documents showed that Berkshire Hathaway sold 2.0175 million shares of BYD H shares on June 19th, and the average transaction price was HKD 234.57 per share. After the reduction, Berkshire Hathaway's shareholding proportion decreased from 6.18% to 5.99%, and the number of shares held decreased to 65.8531 million.

In addition, on June 17th, data disclosed by the Hong Kong Stock Exchange showed that on June 11th, Berkshire Hathaway reduced its shareholding of BYD H shares by 1.3475 million shares, with an average selling price of HKD 230.46 per share and a sales amount of HKD 0.31 billion. After this reduction, the shareholding ratio of Berkshire Hathaway was reduced from 7.02% to 6.9%, and the number of shares held decreased to 75.6861 million.

This also means that between June 11th and July 16th, Berkshire Hathaway accumulated a total reduction of 22.83 million shares of BYD H shares. According to publicly available information, in 2008, Berkshire Hathaway bought 0.225 billion shares of BYD H shares at a price of HKD 8 per share, holding it for 14 years until it began to reduce its holdings for the first time in August 2022. This means that Berkshire Hathaway has sold more than 0.17 billion shares of BYD H shares, and the reduction has exceeded 70%.

However, it should be pointed out that Berkshire Hathaway’s reduction since June has not affected the stock price of BYD. Data shows that from June 11th to July 22nd, BYD H shares climbed steadily, with a cumulative increase of nearly 10%, and the latest market value was 797 billion Hong Kong dollars.

The decision of whether to reduce Berkshire Hathaway's shareholding of BYD to liquidation needs to be clarified. Once the shareholding ratio drops below 5%, the speed of reduction will accelerate because shareholders with less than 5% holding do not need to disclose their reduction.

Regarding the issue of reducing its shareholding in BYD, Buffett responded at the Berkshire Hathaway shareholders’ meeting in May this year: “Investing in BYD is similar to investing in Japan five years ago. We seldom make such large-scale investments outside the United States. But in the future, we will focus on investing in the United States.”

Some analysts in the brokerage industry have stated that when Buffett began to reduce his holdings of BYD in 2022, the news had a relatively large impact on the market, but after multiple reductions, the news of Buffett's reduction has had less and less impact on the market. Buffett's shareholding ratio in BYD is also getting lower and lower. For the value analysis of BYD, investors should return to the judgment of the fundamentals.

In a recent research report by HTSC, Beijing has targeted a private placement of 0.02 million new energy passenger car indicators (limited to pure electric passenger cars) for households without cars that meet the criteria, and BYD or may benefit first from this indicator increase. In addition, China Merchants Securities stated that BYD's sales in June reached a record high, with strong demand for DM5.0 new products Qin L/Seal 06, and expected to be followed by Song L DM5.0. With the commissioning of two major overseas factories, the company's domestic and foreign businesses have both high certainty of growth. The company is one of the industry's favorites and maintains a buy rating and a target price of HKD 300.$Tesla (TSLA.US)$Furthermore Securities also pointed out that the automotive sector bottomed out in July and subsequent turning point repair performance is bullish. It is expected that under the dual drive of base effect and MoM growth, the automobile sector will open a repair cycle of 6-8 months.

Buffett recently also reduced his favorite bank stock - Bank of America. Before the US market opened today, Bank of America's stock price fell more than 1%. According to a publicly available document announced last Friday, between July 17 and 19, Berkshire Hathaway, a subsidiary of Buffett, traded four times and sold about 34 million shares of Bank of America shares worth about $1.476 billion, with a transaction price per share ranging between $43.12 and $44.06. This is Buffett's first reduction of Bank of America since the third quarter of 2020. After completing the above transactions, Berkshire Hathaway still holds over 998.9 million shares of Bank of America's stock, worth over $42.8 billion. Bank of America is still the second largest holding in Berkshire Hathaway's investment portfolio after Apple. As of the close of trading on July 19, Bank of America's total market value was $335.5 billion. This stock has risen a cumulative 29% this year. Although some reduction has been made recently, some analysts point out that Berkshire Hathaway's stake in Bank of America is still significant, indicating Buffett's long-term attitude towards the value of the bank.

Sell Bank of America stocks.

Recently, Buffett also reduced his favorite bank stock - Bank of America. The stock fell more than 1% before the US market opening today.

According to a publicly available document announced last Friday, between July 17 and 19, Berkshire Hathaway, a subsidiary of Buffett, traded four times and sold about 34 million shares of Bank of America shares worth about $1.476 billion, with a transaction price per share ranging between $43.12 and $44.06. This is Buffett's first reduction of Bank of America since the third quarter of 2020.

After completing the above transactions, Berkshire Hathaway still holds over 998.9 million shares of Bank of America's stock, worth over $42.8 billion. Bank of America is still the second largest holding in Berkshire Hathaway's investment portfolio after Apple. As of the close of trading on July 19, Bank of America's total market value was $335.5 billion. This stock has risen a cumulative 29% this year. Some analysts point out that although some reduction has been made recently, Berkshire Hathaway's stake in Bank of America is still significant, indicating Buffett's long-term attitude towards the value of the bank.

In addition, Buffett's recent reduction occurred on the second day when Bank of America announced its financial report. On July 16, Bank of America released its second-quarter financial report, which exceeded analysts' expectations in terms of revenue and profit. In the second quarter, Bank of America's revenue was $25.4 billion, exceeding the market expectation of $25.2 billion; its net income was $6.897 billion, a YoY decrease of 6.9%, equivalent to $0.83 per share, but higher than the market's previous expectation of $0.80 per share. After the financial report was released, many investment banks such as JPMorgan and Jefferies Financial raised Bank of America's target price.

Looking back, in 2011, Buffett invested $5 billion in Bank of America and obtained preferred shares and the right to purchase common shares. This investment not only injected confidence into Bank of America after the financial crisis, but also calmed the market's doubts about its capital adequacy. Subsequently, Bank of America's stock price rose rapidly, bringing huge book profits to Berkshire Hathaway. Buffett not only increased his shares through these rights, but also further increased his shareholding through additional purchases, eventually becoming one of Bank of America's largest shareholders.

Reports indicate that Buffett's recent investment trends show that he is actively adjusting his portfolio to deal with the changing market environment. In addition to reducing its stake in Bank of America, Berkshire also sold a large amount in the first quarter of 2024.$Apple (AAPL.US)$,$HP Inc (HPQ.US)$And.$Chevron (CVX.US)$At the same time, Buffett is also actively seeking new investment opportunities, such as buying lots of Berkshire Hathaway's ninth largest holding - Pharmaceutical company Merck & Co., Inc.$Chubb Ltd (CB.US)$Buffett's recent investment actions reflect his cautious attitude towards the current market and his persistence in diversified investment strategies. By adjusting his holdings in a timely manner, Buffett aims to optimize his investment portfolio, reduce single risks, and maintain his commitment to long-term value investing.

As of the end of the first quarter, the top ten holdings of Berkshire Hathaway were $MCO.US, $DVA.US, among others. At the 2024 annual shareholders' meeting, Buffett said he will still hold Apple, Coca-Cola and American Express for the long term. $Apple (AAPL.US)$,$Bank of America (BAC.US)$,$American Express (AXP.US)$,coca-cola (KO.US) ,$Chevron (CVX.US)$,$Occidental Petroleum (OXY.US)$,$The Kraft Heinz (KHC.US)$,$Moody's (MCO.US)$,$Chubb Ltd (CB.US)$,$DaVita (DVA.US)$Buffett's recent investment actions reflect his cautious attitude towards the current market and his persistence in diversified investment strategies. By adjusting his holdings in a timely manner, Buffett aims to optimize his investment portfolio, reduce single risks, and maintain his commitment to long-term value investing.

Editor/Emily