Warren Buffett BYD Investments

One thing that Warren Buffett is known for is believing in the American dream. He believes that there is no other better investment destination than America. This is the land of opportunities and as the best economy in the world, it offers the right opportunities for investors to benefit from the global economy. Almost all of his investments are in American companies. Looking at his stock portfolio for the last five decades reveals this bare truth. However, there are a few exemptions. In a few instances, Warren Buffett has gone out of the country to look for good stock investment opportunities.

In 2008, Warren Buffett bought a 10% stake in Chinese company BYD. It is an energy company which focuses on the production of green-energy cars and batteries. The investment made by Warren Buffett had generated a gain of $345 million by 2016. There was a significant gain recorded. This is one of the best investment that Warren has ever made, the returns on investment were spectacular. What made the company do very well in such a short time? One, the policies in China favor business growth in the energy sector. The green energy sector has been receiving great support from the government as it is seen as an alternative way of production.

BYD continued to make good profits as it received support from other companies such as South Korea electronics conglomerate, Samsung Electronics Ltd. However, Warren Buffett no longer holds shares in this company as it came later to be affected by management issue leading to a major decline in its share price. Warren Buffett brilliance in making investment decisions was however seen in his ability to beyond the United States and picking up a stock that performed very well. There is still hope electric car manufacturing company will restore its operation and the stock may once again rise.

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