Buffett’s Ups and Downs With BYD

As a snapshot of global financial markets’ ups and downs, look no further than U.S. billionaire investor, Warren Buffett. In 2008, he paid $231 million for a 10% stake in BYD Co., China’s largest maker of rechargeable batteries and whose chairman, Wang Chuanfu, nurtured a dream of making electric cars. BYD’s F3 sedan was China’s best-selling marque in 2009 and 2010, but its hybrid F3DM and e6 electric model have not met with similar success and the company has had to delay the U.S. launch of the e6 until 2012. The company’s share price fell by 14% on Tuesday in the wake of a third-quarter profits warning. The value of Buffett’s stake is now down by $2 billion from its peak in October 2009, though still double what he paid for it.

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Filed under Industry, Markets

One response to “Buffett’s Ups and Downs With BYD

  1. This will be a huge mark in history when a Chinese car is available for sale in the U.S. I think about a few things, like are they going to build some factories here like the Toyota did in Kentucky for example? or are they going to build them in China and ship them here?. And will it have franchised dealerships or all factory owned? Will they sell them through existing channels such as Chevrolet or Ford dealerships through a partnership or will they get really crazy and innovative and sell them through Wal Mart. Does anyone know? Whatever happens, the more that Chinese and American PEOPLE have a better understanding of each other and don’t blame each other for everything then the better. Let’s help each others countries people have more jobs and more cooperation and understanding and then we will truly be partners. Government negotiations does not make the regular people partners, the people and government facilitation does.

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