Score another one for the Oracle. BYD, the Chinese car and batter maker favoured by Buffett sidekick Charlie Munger has (surprise!) turned into a big winner.
Reuters: Warren Buffett’s Berkshire Hathaway Inc has realised a $1.02 billion paper profit on a 10-month-old investment in BYD Co after shares in the Chinese car and battery maker quintupled.
Berkshire’s MidAmerican Energy Holdings Co unit had agreed last September 26 to buy 225 million BYD shares at HK$8 each, a transaction then worth about $230 million.
The China Securities Regulatory Commission on Thursday granted approval for the transaction, which gives Berkshire a 9.89 per cent stake. BYD shares closed Friday at HK$42.90, valuing Berkshire’s stake at HK$9.65 billion, or about $1.25 billion.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.