Warren Buffett Quotes

Warren Buffett is almost as famous for his quotes and one-liners as for his investing - see this selection of Warren Buffett Quotes on Life

Monday, 27 September 2010

Warren Buffett Backs BYD

Warren Buffett Still Likes BYD

Warren Buffett is currently in China visiting, amongst other things, the Chinese battery and auto maker BYD (which apparently stands for Build Your Dreams) that Mr Buffett invested in two years ago. There were rumors last week arising from Reuters that Buffett was not too pleased with the way things were going and that he was considering selling some of his stake in BYD. Buffett invested $230 million in BYD and currently his stake is valued at $1.6 billion, which is not bad for a 2 year investment, but as we all know Warren Buffett thinks the best length of time to hold an investment is 'forever'.

BYD E6 Electric Car
Back in October his stake was worth $2.5 billion, and you've to wonder if Mr Buffett is tempted sometimes to trade his stocks instead of holding on them through thick and thin.

BYD has had its troubles over the last year, which gave rise to the speculation about Warren Buffett's holdings - they have had a setback in plans to export its electric vehicles, a downturn in sales and a legal battle with the government regarding land development.

Today he has apparently put an end to these rumors by saying BYD is "the right choice for me."

"BYD is the right choice for me, and I hope it's the right choice for you too," Warren Buffett said to hundreds of BYD car dealers in Shenzhen.

Buffett said BYD was a "young and energetic" company, and added that he was "amazed" by the performance of the BYD E6 electric car.

BYD has organized a big media drive to coincide with Warren Buffett's visit along with a number of events that to showcase the company's advanced electric vehicle technology.

MidAmerican Energy Holdings Co., a unit Berkshire Hathaway, bought its stake in BYD in 2008 for $230 million. It owns about 9.89% of BYD.

BYD has already said it hopes to list on the Shenzhen Stock Exchange in the second half of 2010, after delaying earlier plans. It plans to to raise 2.85 billion yuan via an offering of up to 100 million A shares.

According to Reuters, Mr Buffett said that his visit to Shenzhen wouldn't be his last, while according to Bloomberg he stated that BYD would be an "electric vehicle leader."

BYD, which has been suffering from falling sales in China, is also China's largest producer of batteries for cell phones and other electronic goods, and has started to branching out into systems for energy storage that can be used by power utilities to balance solar and wind energy supply and demand.

In May BYD joined forces with Daimler AG to form an electric car joint venture that aims at combining German car manufacturing expertise with BYD's battery technology know-how.

The company still hopes to make its 5-seat E6, the first Chinese-made car to be launched into the U.S. market, before the end of the year and aims to be the first Chinese company to sell electric/ hybrid vehicles in Europe, by next year.

All in all the year ahead looks like it will be a busy time for BYD and Warren Buffett's continuing support is undoubtedly an important element that will give investors confidence.

Further reading - tax the rich says Warren Buffett - Warren Buffett Tax

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Saturday, 25 September 2010

Warren Buffett Says Tax the Rich

Warren Buffett says Tax the Rich

In a wide-ranging interview with Becky Quick from CNBC TV (watch the video below), Warren Buffett repeated what he has often said in the past that the rich - the top 2% of the population - (people like himself) need to be taxed more.

the tax system has gotten tilted toward guys like me over the last 20 years is-- as opposed to the middle class, you know, in my view, is a little obscene
the inequities that have gone into the tax code in the last 20 or 30 years compared to the situation that existed when this country was very prosperous in 1960, 1970, 1980 and so on, I-- I think it's-- I just think it's been tilted toward the rich

We agree with him ! The gap between the rich and the rest of us has increased steadily since 1980 for no good reason other than greed. How many billions does one person need ? And where to they get their billions from ? Usually by paying the people who work for them less and paying themselves more.
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