\nLast fall Berkshire Hathaway bought 10% of BYD for $230 million. The deal, which is awaiting final approval from the Chinese government, didn’t get much notice at the time. It was announced in late September, as the global financial markets teetered on the abyss. But Buffett and Munger and Sokol think it is a very big deal indeed. They think BYD has a shot at becoming the world’s largest automaker, primarily by selling electric cars, as well as a leader in the fast-growing solar power industry.<\/p>\n
Wang Chuan-Fu started BYD (the letters are the initials of the company’s Chinese name) in 1995 in Shenzhen, China. A chemist and government researcher, Wang raised some $300,000 from relatives, rented about 2,000 square meters of space, and set out to manufacture rechargeable batteries to compete with imports from Sony and Sanyo. By about 2000, BYD had become one of the world’s largest manufacturers of cellphone batteries. The company went on to design and manufacture mobile-phone handsets and parts for Motorola (MOT, Fortune 500), Nokia (NOK), Sony Ericsson, and Samsung.<\/p>\n
Wang entered the automobile business in 2003 by buying a Chinese state-owned car company that was all but defunct. <\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"
Fortune Magazine has a lengthy article about Chinese electric car maker BYD and the decision by Warren Buffett to violate his own rules of investing and buy a 10% stake in it: Last fall Berkshire Hathaway bought 10% of BYD for $230 million. The deal, which is awaiting final approval from the Chinese government, didn’t […]<\/p>\n","protected":false},"author":33,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[2,132,6,1051],"tags":[7913,7914,1201,7558,4921],"class_list":["post-37421","post","type-post","status-publish","format-standard","hentry","category-economy","category-environmental-crisis","category-sci-tech","category-top-article","tag-byd","tag-electric-cars","tag-foreign-investment","tag-fuel-efficient-cars","tag-warren-buffett","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"yoast_head":"\n
Warren Buffett Takes Charge<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n