Billionaire Warren Buffett's investment firm Berkshire Hathaway has sold another stake in Chinese electric car maker BYD, reducing its stake below 5 percent. In response to this news, BYD's share price fell the most in three weeks.
After the latest sale, the American investment company's stake in the Chinese company fell from 5.06 percent to 4.94 percent. Falling below the 5 percent threshold in equity means Berkshire Hathaway is no longer required to disclose further sales or whether it will exit the position entirely.
In 2008, the company of an American billionaire, investment guru, for 232 million bought 225 million shares of BYD listed on the Hong Kong Stock Exchange. Since then, the package has returned an impressive 2,000 percent.
The little-known company, then associated with the supply of mobile phone batteries, has since become China's largest automaker, including electric and hybrid vehicles. BYD is currently valued at $100 billion and ranks third in the world after such giants as Tesla and Toyota Motor.
BYD's share price fell over three percent on the Hong Kong stock exchange following the release, but remains up about fourteen percent since the start of the year, and down about nine percent over the past one year.
