In the past few days, Buffett's complete divestment from BYD has made headlines in many financial media outlets.

When I saw this news, I wasn't surprised at all; I was just a bit curious as to why the old gentleman is only now selling off his shares.

My first encounter with BYD was entirely due to reading a series of books on the transcripts of Berkshire Hathaway's shareholder meetings.

In this series, BYD and its founder are among the few Chinese companies and entrepreneurs that are repeatedly mentioned.

According to the descriptions in the books, Buffett bought shares in this company mainly because of Munger's insistence. The old gentleman revealed that in the few instances in his life where he had disagreements with Munger, BYD was one of them. At that time, Munger slammed the table and demanded that Buffett buy BYD.

Later, other channels reported further information indicating that one of the main reasons Munger valued this company was because of Li Lu.

I certainly don't believe that Buffett and Munger's purchase was entirely due to someone else's recommendation; I believe that even with someone else's suggestion, the two old gentlemen would carefully examine the company's situation before making a final decision.

This shows how remarkable and unique this company was at that time.

However, just like with other stocks the old gentleman bought, such as Coca-Cola and Wells Fargo, I didn't buy this stock just because he did; I simply began to pay more attention to news about this company, both intentionally and unintentionally.

Earlier this year, the CEO of Great Wall Motors made a statement to the media (in essence):

The automotive industry also has companies like Evergrande.

I clearly remember that in the following days, numerous overseas media outlets reported news and clues related to BYD.

Out of curiosity, I carefully looked at those news articles and clues. Although I couldn't be 100% certain that all the information revealed was true, many times we can deduce the basic truth of a situation using common sense.

After sorting through this news and clues, I immediately thought of two other companies mentioned in the shareholder Q&A transcripts: Freddie Mac and Fannie Mae.

These two companies, which hold a monopoly in the U.S. housing mortgage market, were once firmly held by the old gentleman. However, the two old gentlemen later discovered that they began to disregard risks and gradually slid toward an uncontrollable edge, leading them to quickly divest all their positions.

Not long after the two old gentlemen sold off their shares, the 2008 financial crisis occurred, and the actions of these two companies became clear to everyone. When people saw the reckless behavior of these two companies, they realized that those monopolistic entities had engaged in so many sordid dealings.

If it weren't for being too big to fail, and the U.S. government's emergency rescue, such companies should have been eliminated by the market.

Reflecting on Freddie Mac and Fannie Mae, I began to speculate that the situations revealed in overseas news should be traceable in the financial reports. Such situations should not have escaped the old gentleman's notice; had he sold his BYD shares?

Although every quarter the media extensively reports on the old gentleman's changes in holdings, they always focus on companies like Apple and Occidental Petroleum, and never mention BYD. I also forgot to check the changes in the old gentleman's BYD holdings. So this question gradually faded from my mind.

It wasn't until I saw this news now that I suddenly recalled my previous thoughts and realized that the old gentleman had completely divested. Upon further investigation, I discovered that he had actually started selling BYD shares continuously since 2022.

Additionally, Mr. Munger passed away at the end of 2023.

Clearly, this selling action was a consensus between the two old gentlemen. It's just that the outside world overlooked this news.

Experience still speaks volumes.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。