(Yicai) Nov. 1 -- Warren Buffett's Berkshire Hathaway has again pared its stake in Chinese electric vehicle giant BYD, even though a senior executive at the US investment firm described BYD founder Wang Chuanfu as a genius.

Berkshire sold 820,500 of BYD’s Hong Kong shares [HKG: 01211] on Oct. 25 at an average price of HKD245.86 (USD31.40) each, raising over HKD200 million (USD25.6 million) and reducing its holding in the firm to 7.98 percent from 8.05 percent, according to a document disclosed yesterday by Hong Kong Exchanges and Clearing.

Berkshire has sold shares in BYD 13 times since Aug. 24 last year, netting HKD6.6 billion (USD843.7 million) and cutting its stake from 225 million shares, or 19.92 percent, to 87.6 million shares, or 7.98 percent.

Despite that, BYD's share price has been relatively stable since August 2022. Its Hong Kong shares closed at HKD233.20 today, about 12 percent lower than the closing price before Berkshire's first sale. The benchmark Hang Seng Index has fallen 15 percent during the same period.

Famous value investor Buffett’s repeated sale of shares in BYD has caused a lot of market speculation about whether he is betting against the new energy vehicle industry and BYD itself.

But Charlie Munger, Berkshire’s vice chairman and Buffett’s long-time business partner, called BYD a “miracle” in a podcast on Oct. 29, praising its success in gathering talented staff who have been able to solve EV problems in motors, acceleration, and braking.

Founder Wang Chuanfu is a “genius,” Munger also said. “I’d never seen anybody like that,” he said. “He is a natural engineer and a get-it-done-type production executive.”

Wang is a “fanatic that knows how to actually make things with his hands,” Munger also noted. “The guy at BYD is better at actually making things than Elon is,” he said, referring to Elon Musk, the founder of US electric car giant Tesla.

Editors: Tang Shihua, Tom Litting