Charlie Munger and Warren Buffett's investment in BYD has been one of Berkshire Hathaway's most successful ventures, showcasing the value of long-term investing and the potential of the electric vehicle (EV) market. Here are the key points about their involvement with BYD:

1. Initial Investment:
   • In 2008, Berkshire Hathaway purchased 225 million shares of BYD for $230 million[3][4].
   • This decision was primarily driven by Charlie Munger, who recognized BYD's potential early on[3].
2. Munger's Role:
   • Munger was instrumental in convincing Buffett to invest in BYD[3].
   • He described BYD's founder, Wang Chuanfu, as a "combination of Thomas Edison and Jack Welch" in a 2009 interview[4].
3. Investment Performance:
   • The investment has been incredibly successful, with Munger stating, "I have never helped do anything at Berkshire that was as good as BYD"[3].
   • At its peak in June 2022, Berkshire's stake was worth $9.5 billion[4].
4. BYD's Growth:
   • BYD has become a dominant player in the EV market, surpassing Tesla in global EV sales in Q4 2023[9].
   • The company's success is attributed to its vertical integration, affordable pricing, and strong presence in the Chinese market[9].
5. Munger's Perspective:
   • Munger praised BYD's performance, stating, "BYD is so much ahead of Tesla in China ... it's almost ridiculous"[4].
   • He highlighted BYD's ability to increase prices while Tesla had to offer discounts in China[4].
6. Recent Developments:
   • Berkshire Hathaway has been gradually reducing its stake in BYD since August 2022[5].
   • As of June 2024, Berkshire's stake in BYD was reduced to 6.9%[11].
7. Investment Philosophy:
   • The BYD investment aligns with Buffett and Munger's value investing strategy - buying undervalued stocks and holding them long-term[4].
   • Munger emphasized the importance of patience, stating, "The big money is not in the buying or selling, but in the waiting"[3].
8. Legacy:
   • The BYD investment is considered one of Munger's most significant contributions to Berkshire Hathaway[10].
   • It demonstrates the value of identifying emerging markets and technologies for long-term investment success.

In conclusion, Munger and Buffett's investment in BYD exemplifies their ability to identify and capitalize on long-term growth opportunities, even in emerging markets and industries. Despite recent reductions in their stake, the investment remains a testament to their investment acumen and the potential of the EV market.

Sources: [1] https://en.wikipedia.org/wiki/BYD_Company [2] https://en.wikipedia.org/wiki/BYD_Auto [3] https://www.cnbctv18.com/market/when-charlie-munger-chose-chinese-ev-maker-byd-over-tesla-18444591.htm [4] https://finance.yahoo.com/news/charlie-munger-says-byd-best-094339069.html [5] https://edition.cnn.com/2024/06/18/cars/berkshire-hathaway-byd-china-ev-tensions-intl-hnk/index.html [6] https://www.forbes.com/sites/russellflannery/2023/07/15/warren-buffett-backed-ev-maker-byd-says-first-half-profit-may-have-more-than-tripled/ [7] https://www.angelone.in/blog/warren-buffetts-byd-investment-a-30x-return-story-revealed [8] https://www.bydglobal.com/cn/en/BYD_ENAboutByd/CompanyIntro_mob.html [9] https://www.cnn.com/2024/01/03/cars/china-byd-explainer-tesla-intl-hnk/index.html [10] https://fortune.com/2023/02/16/charlie-munger-byd-stake-warren-buffett-berkshire-hathaway-china-tesla/ [11] https://www.cnbc.com/2024/06/17/warren-buffetts-berkshire-hathaway-trims-its-stake-in-chinese-ev-maker-byd-to-6point9percent.html