Why BYD is a screaming buy
The company’s co-founder cum vice president is leaving, auto sales are terrible and workers have been retrenched, those who kept their jobs have their salaries cut, analysts have downgraded the stock. This sounds like a company in deep trouble. Yet, surprisingly, the investor which made this company famous is not selling even 1 share of this company. Yes, I am talking about BYD and the investor is none other than Warren Buffett.
Recently, Francis Chou, another famous value investor in Canada has invested in BYD. Since these 2 value investors are not giving up on BYD, why should you? Electric cars are still the future of the sutomobile industry and China will continue to support electric cars as this is a chance for China to grab a leading position in the electric car industry. The lithium battery business also owned by BYD will provide the profits to sustain the business until the electric car industry takes off.