Futu Information 29 News$Byd Company Limited (01211.HK) $It hit a new high in intraday trading today. By the close, the company's shares were up 5.03 per cent at HK $156.6, with a market capitalization of HK $4272.27.

It is worth noting that as BYD's "long-term shareholder", Buffett, the god of stock, paid HK $1.8 billion at HK $8 per share to subscribe for 225 million H shares in BYD in 2008 and has held them ever since. So how much has Buffett made so far from this investment?

Buffett buys $230 million into BYD

On September 29th, MidAmerican, a subsidiary of Warren Buffett's investment, announced that it had subscribed for 225 million shares of BYD at HK $8 each for US $230 million (HK $1.8 billion), accounting for about 10 per cent of BYD's shares after the placement.

"We are very excited to be a partner of BYD and the Chinese. Mr. Wang Chuanfu has unique management and operation ability and excellent record, and we look forward to working with him. Buffett spoke highly of Wang Chuanfu's investment in BYD.

At that time, BYD Chairman Wang Chuanfu said that the amount of Buffett's investment, BYD will be used for electric cars, electric vehicles, batteries and other areas of operation. For BYD, the investment has three major benefits to the company's global operation:

First, it can enhance the global brand value of BYD.

Second, Buffett's IMF has a strong energy network in the United States, and we can cooperate on the construction of the charging network in the future.

Third, the chairman of MidAmerican Energy has many years of management experience, and his appointment to BYD's board can help the company develop a better global strategy.

The eve before Buffett bought BYD: domestic institutions said they could not buy it.

According to the Weekly Weekly report at the time, an analyst at a brokerage fund company, who spoke on condition of anonymity, said, "We did not know that Buffett had invested in BYD, but in hindsight, there were actually traces to follow, which is really a pity." The analyst took part in the inspection of BYD with the delegation on September 27. At that time, they had no knowledge of Buffett's subscription, and BYD closely blocked the news.

After inspecting BYD, the overall feeling of more than a dozen fund managers is that although BYD's fundamentals are still good, there is a serious turnover of personnel and a rise in raw material costs. Although revenue increased in the first half of the year, profits also declined because of rising costs. As a result, it feels that BYD, like other similar companies, has basically not got rid of the overall economic downturn this year. And the valuation is not low. Therefore, the judgment of the fund company is that "buying is risky and needs to be cautious." "

A few hours after the fund company made its judgment, there was news that Buffett was going to do it. The attitude of many analysts suddenly made a U-turn.

"in any case, we still have a lot of respect for the stock god. He is a value investor, long-term holding rather than short-term hype, should not invest in a bad company. Another analyst who took part in the inspection but did not want to be interviewed said only one thing.

Buffett: investing in BYD was Munger's idea

Buffett was initially skeptical about investing in BYD, but Munger insisted. After David Sokol, chairman of MidAmerican Energy, Berkshire's utility, made a special trip to inspect BYD's factories in China, he agreed with Munger's judgment and finalized the investment.

Buffett said it was Munger's idea to invest in BYD. He said he was genuinely happy when Munger met a genius and saw that he was running a good business.

"I know people generally think that Warren and I [investing in BYD] look crazy, but I don't think so," Munger said. When you see BYD's car, you will understand what kind of car it is. I think everything they do: cars, glass, tires. It's all very good, and it's extraordinary. I think the cooperation with BYD is a very important cooperation for Berkshire. BYD may be a small company, but it has great ambitions. I will be very surprised if BYD doesn't succeed. With regard to the development and cooperation of BYD, I feel the greatest honor in my life. "

Buffett said in an interview at the annual meeting of Daily Journal in the United States on February 14, 2019 that he is very optimistic about the development of electric vehicles in China, and that Buffett bought shares in Chinese brand BYD at the suggestion of Charlie Munger a decade ago. At this time, the facts proved that their decision at that time was very correct.

Holding shares for 12 years, the book income is more than 18 times!

As of June 30, 2020, Berkshire's holdings remained unchanged at 225 million H shares, according to Wind.

According to today's closing price of HK $156.6, Buffett's investment return on BYD has reached 1857.5%, with a book income of HK $33.435 billion!

Buffett has stood for BYD many times.

While participating in a series of BYD events on September 27, 2010, Buffett said that BYD is a young and promising company that is experiencing rapid growth and a leader in innovation and technology. "BYD is the right choice for me," he said. "

On April 14, 2020, local time, Buffett posted a picture of him wearing a mask made by BYD. Buffett in the photo is wearing a light-colored T-shirt that reads: "I want to live a long life, so far so good!" "he also wrote under the photo:" now, my BYD mask is helping me achieve my goal! Thank you! "