Warren Buffet recharges his batteries with investment in BYD
Chinese battery manufacturer BYD can now be mentioned in the same breath as Goldman Sachs: both have recently been given the blue-chip imprimatur by U.S. billionaire investor Warren Buffet. The Oracle of Omaha's MidAmerican Energy Holdings has bought a 10-percent stake in BYD for $230 million.
BYD has big plans for its lithium-ion battery work and its automotive division. The company's automaking arm builds – or clones, depending on your viewpoint – cars that it intends to eventually export around the world, including America. Its ultimate aim is create its own cars that run on its own batteries, like the e6. Assuming that BYD gets the batteries to work, and then can sell them to other automakers, the company will have a huge competitive advantage. If it can sell its cars, that is.
Buffett's investment will help BYD achieve that, and should help Buffett make even more money. BYD says another planned use of that $230 million is to accelerate its move into the U.S. market, which was planned for 2010. When they finally do arrive, we'll see if Buffett has as much faith in their vehicles as he does in their batteries.
[Source: IHT]
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Reader Comments (Page 1 of 1)
dukeisduke 10:05AM (10/01/2008)
Does he get one of those Chinese hotties as part of the deal?
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hankfidel 10:31AM (10/01/2008)
Fuch...you beat me to it. I was gonna ask if the girl came with the car.
Paul 10:56AM (10/01/2008)
FYI: Buffett
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dodgeviper88 11:46AM (10/01/2008)
Now that's really a statement; an American entrepreneur investing in China brand cars rather than American brand cars.
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tanooki2003 12:30PM (10/01/2008)
I don't blame him either. Even though the Chinese companies have been ridiculed in the past months for their mistakes and cloning, they still show something that the domestics have clearly lost over the past 10+ years, which are clearly known as "potential and high determination to achieve success no matter what the costs are" rather than recycling, tweaking, and modifying tired old ideas.
howard 12:47PM (10/01/2008)
Hey dodgeviper88; Warren Buffett is investing in the lithium-ion battery development we need to give OUR cars the range and power to compete with cars like the TESLA not the car itself! Just how much have you invested in the AMERICAN automobile? not including buying them! Warren Buffet thinks about investing in AMERICA and does just that! You should make it a point to read more about this man and what he does for our country before you condem him for investing in a battery that will be the one thing that will help us become ENERGY EFFICIENT and stop sending $70 billion a year to countries who would like to take away our way of life! think about that, NO MORE CARS, PRIVATE AIRPLANES, BOATS, OR ANYTHING YOU HAVE NOW THAT YOU CAN'T DO WITHOUT! They would take it away, believe me! Look at what happened to Germany in 1933 and yes it could happen here!
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sam 9:56PM (12/13/2008)
I am a young Canadian. I think the argument or the beleive that "...our way of life (western/American) is being threatened by some fanatic muslims" is bogus. The american media has done a terrible job in telling americans what the world perceives them as. Americans need to watch non-american/western biased media and travel a bit to get a better understanding of the world. Google the documentary "Secrets of the CIA" and that would be a good head start.
As for the Warrent Buffet I think he is a great American and investor, but most importantly he is a capitalist. And capitalist has one concern ....$$$.... that means he would invest where he can give a return to his shareholders regardless if that is good or bad for America.
Cheers
BSurge 8:13PM (10/20/2008)
Buffet is making big moves and is backing up what he's preaching. Warren knows what he's talking about and he keep's it simple. That's probably the most challenging thing to do is to keep investing simple and this is why he's at the top of his Game.
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