Warren Buffet Places His Bet
Posted on 15. Oct, 2009 by nrossique in Electric Car Companies, Electric Car Stocks, Videos
Warren Buffet once said ”Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.” This quote came to mind when we recently discovered that Buffet had taken a position in BYD Co. Most of us have never heard of BYD CO., a Hong Kong Company established in 1995 that became public in 2007 on the stock exchange for Hong Kong Limited.
In 2008 a division of Berkshire Hathaway took a 10% stake in BYD CO. in exchange for $230 million. One has to wonder if the savviest investor of our time would be perfectly happy holding his position in BYD CO if the market shut down for 10 years? Apparently he would, because according to the BYD Web site, Warren Buffet and his colleagues are expecting BYD CO to become the largest auto maker in the world.
When we became aware of the Berkshire Hathaway Division that plopped down $230 million on an electric car company, another quote came to mind; ”We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” That quote mirrors the entire auto industry. At best, the auto industry is confusing and most investors are fearful about investing in an electric car company, especially one that lacks brand awareness.
This “fear” of electric vehicles has created an opportunity for savvy investors like Warren Buffet, and it may very be the perfect time for investors to take advantage of the unique opportunities that exist right now in the electric car segment of the automobile industry. Obviously, there is at least one smart investor who is convinced…Warren Buffet.
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