Warren Buffett’s Berkshire Hathaway has ended its long-running investment in Chinese electric vehicle giant BYD, closing a 17-year chapter that ranks among the most profitable in the company’s history.

Berkshire Hathaway Energy (BHE), a subsidiary of Buffett’s conglomerate, confirmed in its first-quarter filings that the value of its BYD stake had been reduced to “zero” as of March 31. The move marks the conclusion of an investment first made in September 2008, when Berkshire paid $230 million for a 10 per cent holding in the then little-known EV maker.

Over the years, the stake became a legendary Buffett success story. At its peak in 2022, Berkshire’s investment was valued at around $9 billion, representing a nearly 3,900 per cent gain. That year, however, Buffett began gradually trimming the position, prompting speculation about whether he was cashing out too soon.

Buffett later noted the decision reflected his disciplined investment style rather than any loss of confidence in BYD’s leadership, led by founder and CEO Wang Chuanfu. It was Buffett’s late partner Charlie Munger who first pushed for the deal, famously comparing Wang to Thomas Edison. Munger once described BYD’s growth as “a miracle,” praising its early innovation in battery technology.

Today, BYD is the world’s largest EV maker by sales, outselling even Tesla. Yet the company faces growing headwinds in China, the world’s most competitive EV market. Analysts point to overproduction and intensifying price wars as risks to long-term profitability. In recent months, BYD cut its annual sales target from 5.5 million to 4.6 million units, while its share price has slipped 20 per cent over the past four months.

Market analysts say Buffett’s timing is consistent with his principle of not holding onto winners indefinitely. “He invests based on fundamentals and is not sentimental,” MarketWatch observed.

While Buffett’s exit has fueled debate about BYD’s future, the company still dominates China’s EV sector and is pushing for international expansion. However, with concerns over slowing growth and shrinking margins, the “miracle” that once propelled Buffett’s most famous overseas bet faces its toughest test yet.