To Chuanfu! Thanks for Everything, Warren Buffett
Wang Chuanfu (above), the founder of Chinese battery manufacturer and automaker BYD is reportedly the richest man in all of China. Already a wealthy man, Bloomberg reports that Chuanfu has jumped a startling 102 places to land himself atop Hurun Rich List, an annual wealth index chronicling the country's richest people.
How did this happen? Chuanfu made nice with "The Oracle of Omaha" Warren Buffett, and the investor has paid him back – handsomely. The iconic businessman's Berkshire Hathaway Inc. took a 10% stake in BYD this year, and the stock feeding frenzy that resulted pushed Chuanfu's personal wealth from a piffling $880 million up to a get-Robin-Leach-on-the-horn $5.1 billion. Buffett himself pocketed a billion from the relationship in short order, too.
Of course, Bloomberg notes that it also helps that BYD's F3 sedan has become China's best-selling automobile this year, and presumably the demand for high-capacity rechargable batteries for everything from phones and laptops to hybrid autos isn't going anything but up.
Either way, we wouldn't be surprised to learn that Chuanfu plans on repaying Buffett's favor come holiday season by sending him the mother of all fruit baskets.
[Source: Bloomberg | Image: Bill Pugliano/Getty]
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Reader Comments (Page 1 of 2)
Carlos 6:37PM (10/02/2009)
I would kill the be Warren Buffett's PA.
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Kareem M. Kamel 6:51PM (10/02/2009)
Dear Chris,
Its called the BYD F3
BYD current range :
BYD F0 - F3-F3DM - F6
BYD S8
BYD E6
Interestingly tho most of these are blatant copies or inspirations of other Japanese cars .
However they are not cheaply built as the usual from china .. If they hire some real designers they would really evolve into a SEMI-Korean company .
they have 2 working production ready hybrids, the F3DM and E6
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hypermiler 2:27PM (10/03/2009)
@ Kareem M. Kamel
Japanese automakers aren't afraid of Chinese or Americans; they are afraid of Koreans.
http://www.businessweek.com/ap/financialnews/D9B2TGTG1.htm
Franz 7:04PM (10/02/2009)
I remember several people on this site scoffing at Buffet's investment in BYD, saying he should've invested in US companies instead. Looks like he's got a billion reasons as to why this was the better move. Kinda sucks for the rest of us, but that's business for ya.
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noodlz 7:16PM (10/02/2009)
Buffet could invest in dirt and make a billion.
jpm100 9:54PM (10/02/2009)
The stock only went up because of the attention Buffet's purchase gave it. It just boggles that anyone thinks this was more that a consequence of a PR move.
Franz 11:59PM (10/02/2009)
It hardly matters. Fact is, it's an investment that yielded a billion dollars in profit in a short amount of time. It was a shrewd business move no matter how you wanna slice it. While you sit there splitting hairs, Buffet's probably making a couple more billion.
jpm100 1:07AM (10/03/2009)
It was borderline pump and dump.
why not the LS2LS7? 4:00AM (10/03/2009)
It only yields a real profit if you can sell the equities.
How much do you think his shares are worth if he tries to sell them? He couldn't possibly unload them quickly enough to not take a huge bite once word that Berkshire-Hathaway is getting out becomes known.
jpm100 8:30AM (10/03/2009)
Whoops. The article wording made me assume he'd already gotten out. OTOH, it did run up quickly after Buffet's investment and primarily for just that reason.
Judy Zik 12:23PM (10/03/2009)
Laugh it up folks but remember the name BYD. Based on the product I have seen from them developed in such a short time in the business I expect they will be the first serious competitor from China. Especially when it comes to electric vehicles. Being king of the battery makers kind of gives you an edge. Add in the cheap Chinese labour and what appears to be rapidly improving engineering and you could someday see a Chinese Electric Car alongside all the other things from China you buy at Wal-mart already. BYD stands for Build Your Dreams and this guy has the money and the engineers to do it. He made no bones about some of his models being inspired by others. He decided that if the Toyota Corolla is the best small sedan on the market today let's buy one and study it and build one the same as a place to start from. The kind of thing you could only get away with in China but now they can build their own models based on what they have learned while making a fortune on their home market. BYD is serious about building cars and I predict they will be the first Chinese manufacturer to show something saleable in North America.
hypermiler 2:33PM (10/03/2009)
@ Judy Zik
> Based on the product I have seen from them developed in such a short time in the business I expect they will be the first serious competitor from China. Especially when it comes to electric vehicles.
BYD products aren't even legal to sell in the US. BYD car models are pirated from Toyotas, while BYD auto battery is pirated from A123's.
> Being king of the battery makers
BYD is the king of Chinese domestic battery market; but not outside of China.
Will 5:54PM (10/03/2009)
They are the world's second largest rechargeable battery maker, which doesn't deviate from the point.
PauloBecker 7:15PM (10/02/2009)
B3? Isn't that the one with the epic fail crash test?
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Will 6:07PM (10/03/2009)
The wrong car perhaps.
http://www.youtube.com/watch?v=7BMwe3RYpUY
Jung 7:27PM (10/02/2009)
lol@the post the title.
pretty funny autoblog. your joke didn't go unnoticed.
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Bob-omb 10:10AM (10/03/2009)
Agreed. Hilarious.
Ben 12:39PM (10/04/2009)
plus one for the title. Now Wang Chuanfu just needs a bit of fabulous....
My_SS_RX8 7:47PM (10/02/2009)
I remember some of the early Japanese cars. Like Datsun, Toyota (who many mispronounced) and some little motorcycle company ( I think they made sewing machines also) who wanted to sell cars in America. Like they could ever build anything as good as Americans, or compete against the likes of General Motors, Ford, Chrysler, or American Motors, or even the older Studebaker Packard Corp.. Those little tinny Japanese things were a danger and a joke. Who would ever sell them and who would ever buy them???? Ya like ha ha!
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Jim 8:37PM (10/02/2009)
it's not 1970. We know how to build decent cars now, there's no excuse for building junk in 2009.