The race for alternative forms of energy is hotter then ever, even with the current administration pumping funding back into the coal market. Then Tesla came onto the scene with their modern electric car the Model S it changed the world, offering a normal looking sedan with sporty performance and a beautiful exterior. The company has done incredibly well and over the past few years there have been a number of other successful electric car models that have been spawn as well. Warren Buffett who is known for placing his eggs in baskets that he believes in placed a bet on a small unknown Chinese electric car maker nine years ago. Now that stock in the company BYD has been exploding on news that the Chinese government is trying to get all Fossil fuel vehicles off of their roads in the next twenty years.
Warren Buffett has stuck with this company for nine years because of their holistic approach to the energy market. The company doesn’t just believe in putting electric vehicles on the road, they also believe in helping develop the home energy market as well. BYD wants to make solar panels more accessible, and they are trying to make electric vehicles more accessible as well. Their vehicles in China are not as flashy as a Tesla, and they aren’t meant to take market share from Honda or Toyota. BYD wants to target the middle class working family who still has a goal of owning a new car, and thus far they have been successful.
Warren Buffett has stuck behind this stock because the company fits in line with his vision, and what his core values are. This makes a compelling investment for Warren Buffet, and with the stock price in BYD heating up now is the best time to invest in this company.