With all of the delays and cancellations, you might think that someone who's invested $230 million into BYD would be a little worried. This is not the case with U.S. billionaire Warren Buffett, who told Reuters recently that he expects green cars to provide him with a "sizable profit" in about five years. Buffett's investment helped push BYD's stock up to a 52-week high of HK$84 (about $10.80 U.S. at today's exchange rates) but the stock closed at HK$42.6 ($5.48) yesterday. Buffett said BYD's focus on green buses in the coming year and its long-term plan to focus on building efficient cars will pay off in the long run.
To accomplish this, BYD will need to turn sales around. After a successful first half of 2010, sales dropped and the company slashed sales expectations for the year. The company has a lot of potential for better results in the future, including an electric car joint venture with Mercedes. If Buffett says the company will be a success, will that make it so?
[Source: Reuters]
To accomplish this, BYD will need to turn sales around. After a successful first half of 2010, sales dropped and the company slashed sales expectations for the year. The company has a lot of potential for better results in the future, including an electric car joint venture with Mercedes. If Buffett says the company will be a success, will that make it so?
[Source: Reuters]
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