One can only guess here, but Warren Buffett is probably a bit annoyed at the chairman of his Chinese car-battery investment BYD.
Reuters: “[Buffett’s] MidAmerican has always intended to raise its stake in BYD because it believes BYD has good prospects in the development of renewable energy, but we are still considering (whether to sell more),” BYD Chairman Wang Chuanfu told reporters on Monday
BYD shares spiked 8%, on a day when Asian markets were tanking. Nice way to pump the stock.
Even if Warren Buffett were to receive new shares via a placement at a discount to the market, it never helps to have your future investment jawboned higher. As a chairman, just don’t speculate publicly on such things.
If Mr. Wang keeps talking like this BYD might no longer be a value buy.
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