Commentary: Buffett’s 38-Fold BYD Windfall Has Lessons for Us All

Warren Buffett’s recent complete divestment from BYD marks the end of a remarkable 17-year investment journey, during which he achieved a thirty-eightfold profit. While many might envy this feat, the article argues that most investors would not have passed Buffett’s initial tests: enduring an 80-90% drawdown and holding a stock for over a decade[para. 1][para. 2].

Buffett first invested in BYD in September 2008 at the height of the global financial crisis. At that time, the markets were rattled by panic and uncertainty. Through Berkshire Hathaway, Buffett spent HK$1.8 billion (around US$231 million) to acquire 225 million shares of BYD at HK$8 per share, representing about 10% of BYD’s equity[para. 3]. This was seen as an audacious bet, especially since BYD was then a little-known Chinese automaker and new-energy vehicles had not yet attracted mainstream attention. The investment was heavily influenced by Charlie Munger’s endorsement of BYD’s founder Wang Chuanfu, likening him to a combination of Thomas Edison and Jack Welch[para. 4].

The true test began after the purchase. For 14 years—from 2008 until his first sale in 2022—Buffett held onto his entire stake, a move very few investors could sustain. Throughout this period, BYD’s stock price was volatile, enduring market skepticism and surging growth phases, but Buffett maintained his position unwaveringly[para. 5]. This demonstrated the core of Buffett’s philosophy: long-termism. He has been quoted as saying that one should only buy a stock they’d be willing to hold for 10 years, a maxim perfectly exemplified by his holding of BYD[para. 6].

In August 2022, after the investment had returned over fortyfold, Buffett began to slowly reduce his position in BYD[para. 7]. This case underscores three pillars of Buffett’s methodology: value investing (he bought when BYD’s valuation multiples were low and the industry was nascent), long-term holding (his patience allowed the company’s true worth to emerge), and contrarian thinking (he invested amid widespread market fear during a crisis)[para. 8][para. 9][para. 10].

The article stresses that the primary lesson from Buffett’s exit should not be the act of selling, but the investment wisdom he displayed throughout[para. 11]. True success, it notes, results from discovering undervalued companies and holding them long-term, rather than following fleeting market trends[para. 12].

After news broke of Buffett’s complete exit, BYD’s Hong Kong-listed shares declined by over 6% across September 22 and 23, 2025, highlighting his influence on market sentiment[para. 13]. However, the article stresses that most investors fail to replicate Buffett’s discipline: few bought BYD alongside him in 2008, and even fewer could withstand severe price drops or hold the stock for so many years[para. 14].

Ultimately, Buffett’s edge lies in his profound understanding and emotional steadiness—qualities far beyond merely copying his trades. The market can imitate his transactions, but not his patience or contrarian courage[para. 15]. The author concludes that in today’s volatile environment, Buffett’s approach—finding good companies at fair prices and waiting—is more valuable and instructive than ever[para. 16]. Yang Jun, with substantial experience in risk management and financial technology, offers this perspective, noting these are personal views[para. 17][para. 18].