Charlie Munger's BYD Bet: Berkshire's Billion-Dollar EV Play

Charlie Munger, the architect of the BYD investment strategy

By EVWorld Si Editorial Team

From Omaha to Shenzhen: The BYD Bet That Paid Off

In 2008, Berkshire Hathaway made a bold and unconventional move: investing $230 million in a little-known Chinese battery and electric vehicle company called BYD. The decision wasn't Warren Buffett's alone - it was driven by Charlie Munger, who called BYD's founder Wang Chuanfu "a combination of Thomas Edison and Jack Welch."

At the time, few in the U.S. had heard of BYD. But at that year’s Berkshire shareholder meeting in Omaha, attendees- including this author - got a firsthand look at BYD’s electric car and bus on display. It was a quiet debut for what would become one of the most successful bets in Berkshire’s history.

Charlie Munger’s Vision

Munger was introduced to BYD through Li Lu, founder of Himalaya Capital, who had invested in the company for Munger’s family portfolio. Munger saw BYD not as a speculative startup but as a vertically integrated battery and EV manufacturer with extraordinary leadership. “This is not some unproven, highly speculative activity,” Munger said. “What it is, is a damn miracle.”

BYD had already built dominance in rechargeable batteries and was pivoting into automobiles with minimal capital. Munger’s enthusiasm convinced Buffett to back the company, despite his usual aversion to tech investments.

Returns That Defied Expectations

Berkshire purchased 225 million H-shares of BYD at HK$8 per share. At its peak, the stake was worth over $9.5 billion. Even after trimming its position, Berkshire has reportedly earned more than $7 billion in profit from the investment.

Recent filings show Berkshire now holds less than 5% of BYD’s Hong Kong-listed shares, down from nearly 20% at one point. The sell-off has been gradual, with Berkshire cashing in on BYD’s meteoric rise while maintaining a modest position.

BYD’s Rise to Global Dominance

BYD is now the world’s top-selling EV brand, surpassing Tesla in battery-electric vehicle sales in Q4 2023. The company delivered over 3 million vehicles in 2024, including hybrids and fully electric models. Its expansion into Europe, Japan, and Latin America has solidified its global footprint.

BYD’s success is built on vertical integration—from battery cells to semiconductors to vehicle assembly. This model has allowed it to scale rapidly and maintain cost control, especially in China’s competitive EV market.

Legacy and Lessons

Charlie Munger passed away in November 2023 at age 99, but his legacy lives on in the BYD investment. “I have never helped do anything at Berkshire that was as good as BYD,” Munger said in one of his final interviews.

For Berkshire Hathaway, the BYD story is more than a financial win—it’s a testament to long-term thinking, conviction, and the power of seeing potential where others see risk. And for those who witnessed BYD’s quiet debut in Omaha, it’s a reminder that the future often arrives without fanfare—but with extraordinary impact.

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