Guest longinvestor Posted March 4, 2017 Share Posted March 4, 2017 A bit more detail on the factory expansion in CA and some of the additional trucks they are working on. The UPS truck looks great. Electric Truck and Bus Maker BYD on a Roll After Bumpy Start https://www.trucks.com/2017/02/06/electric-truck-bus-byd/ That was a phony laugh. It is really phony now that five years have passed and BYD is reporting earnings growth and we are still waiting for Musk to deliver. Link to comment Share on other sites More sharing options...
fareastwarriors Posted April 6, 2017 Share Posted April 6, 2017 BYD in talks with Chilean lithium producers Chinese electric carmaker wants to secure supplies of key battery material https://www.ft.com/content/ab639040-1aa9-11e7-a266-12672483791a BYD, the Chinese electric car and bus company part-owned by Warren Buffett, is talking to lithium producers in Chile about potential deals to secure supplies of the key battery material. Fred Ni, vice-president of BYD Americas, said the company was considering a range of options from partnerships to supply agreements and direct investments.“It’s still in negotiation stage. We haven’t defined which model it will be,” Mr Ni said at the CRU world copper conference in Santiago. “We consume 20 per cent of the lithium supply in the world — that means we have a strong interest to secure stable supply of lithium.” Chile is one of the world’s largest sources of lithium, a key ingredient for batteries, which is extracted from brine trapped beneath the country’s Atacama Desert. Sociedad Química y Minera de Chile (SQM) and US-based Albemarle are two of the country’s largest producers, while the government is also encouraging state-owned copper company Codelco to develop deposits.Beijing wants to double electric vehicle battery capacity by 2020, and has encouraged producers to invest overseas. Chinese companies have sought out positions in the lithium-ion supply chain by buying up mining assets. Mr Ni said BYD was also worried about the price of cobalt, another metal used in batteries. Most of the world’s cobalt is produced in the Democratic Republic of Congo by mining company Glencore. The company has started to use cobalt-containing batteries in its new Tang and Qin passenger vehicles. These batteries typically have a higher energy density, allowing them to store more power per kilogramme. Cobalt prices have more than doubled since last year due to strong demand from battery makers for cobalt chemicals, and as a group of hedge funds stockpiled the metal in warehouses. “The price of cobalt is very volatile. That is the material that manufacturers are trying to reduce,” Mr Ni said. “We saw before when we were doing rechargeable batteries for cell phones and notebook computers that the cobalt price increased four times within a year. We can imagine if we have so many electric cars on the street how much cobalt we are going to use.”BYD’s electric vehicle sales rose 70 per cent last year to 96,000 vehicles. While growth is likely to slow this year after China’s government reduced subsidies for buyers, the company is targeting around sales of around 150,000 cars and buses. Link to comment Share on other sites More sharing options...
Guest longinvestor Posted July 20, 2017 Share Posted July 20, 2017 http://www.cnbc.com/2017/07/18/tesla-faces-rival-as-chinas-warren-buffett-backed-byd-plans-us-expansion.html?recirc=taboolainternal Made more and bigger vehicles than Tesla in 2016. Link to comment Share on other sites More sharing options...
Aurelius Posted September 26, 2017 Share Posted September 26, 2017 Stock is up 80% this year and over 50% this month! Just wondering if anyone is still invested in BYD? Personally I bought when the price slumped at the end of 2014. I've recently sold a portion of my position although it's still a sizable position in my portfolio. This truly is an emotional stock - big swings. Seems like a good stock to have a core position and then possibly sell and add based on volatility. Link to comment Share on other sites More sharing options...
Aurelius Posted September 26, 2017 Share Posted September 26, 2017 As for Berkshire - BYD has compounded for 9 years at something like 28%. 230 mil. investment is now 2,1B. Link to comment Share on other sites More sharing options...
Happy Posted September 26, 2017 Share Posted September 26, 2017 I still like it very much long-term even at the higher price. It seems very likely to me that BYD will earn far more money in 5-10 years with a big shift to EVs, monorail in China, electricity storage for US homes and probably even selling batteries to other car manufacturers. Chuan-fu may also surprise with other new good ideas that can't be expected today. That said, changing industries are more risky and there will be a lot of competition in electric vehicles, so I am also thinking about trimming the position a bit after the recent run-up. Link to comment Share on other sites More sharing options...
rogermunibond Posted September 26, 2017 Share Posted September 26, 2017 Aurelius - I own all the shares I bought in 2011. It's a hard company to get a grasp on and most of it is just tagging along with Munger and Li Lu. Link to comment Share on other sites More sharing options...
Aurelius Posted September 26, 2017 Share Posted September 26, 2017 rogermunibond agree - that's been my experience and that's also why I own it. Link to comment Share on other sites More sharing options...
rogermunibond Posted September 29, 2017 Share Posted September 29, 2017 https://www.wsj.com/articles/china-sets-new-deadline-for-electric-car-production-1506608295 China sets EV goals 10% by 2019 12% by 2020 Enforcement starts in 2020 Link to comment Share on other sites More sharing options...
eclecticvalue Posted October 1, 2017 Share Posted October 1, 2017 https://qz.com/1083571/nine-years-ago-warren-buffett-put-a-bet-on-byd-then-an-unknown-chinese-cellphone-battery-maker/ Link to comment Share on other sites More sharing options...
Gregmal Posted August 8, 2018 Share Posted August 8, 2018 Anyone still watching this? After all the euphoria about a year ago, right now seems to be a bit more appealing from a value perspective. Especially after a lot of noise and misinformation drove down the stock. Link to comment Share on other sites More sharing options...
petec Posted August 8, 2018 Share Posted August 8, 2018 I wasn't, but I might now. At first glance though I'm not sure why I would buy this rather than BABA/JD/Tencent which are FCF positive and have (or at least BABA and Tencent have) huge incremental margins. Those are priorities for me right now. Link to comment Share on other sites More sharing options...
Gregmal Posted August 8, 2018 Share Posted August 8, 2018 I wasn't, but I might now. At first glance though I'm not sure why I would buy this rather than BABA/JD/Tencent which are FCF positive and have (or at least BABA and Tencent have) huge incremental margins. Those are priorities for me right now. Funny you should mention that. I've been keeping an eye on BYD, but just rolled out of Kowloon Development and into Tencent last night. Still waiting on BYD. For what, I don't know exactly. Link to comment Share on other sites More sharing options...
redhots Posted August 8, 2018 Share Posted August 8, 2018 I have been buying more. Here are my quick notes. Stock is down ~50% since high in Oct. (but that high was a quick ramp). Stock is at the same price ($5.34) that DJCO (Munger) purchased last year - who arguably knows a lot about this investment. Financials currently aren’t great (possibly misunderstood by the market) because of * subsidy changes on electric vehicles earlier this year.. But that is temporary and going to reverse and is already reversing. * Skyrail projects not completing in 2018 - waiting on approval from central government. Creating a moat as the low cost producer. Optionality * Skyrail (Monorail) business is new and could be very large * CATL just had an IPO and BYD is pretty much the same capacity. BYD is now less in market value than CATL and you get all of the other stuff (outside of battery making) for free. BYD said they are opening up the battery business to others… Also just announced they are the biggest battery capacity in the world. * NEV credit system could bring in a bunch of cash. (selling excess credits) * World wide expansion continues (India, Europe, USA, Canada, Brazil, etc...). They have spent a ton of money expanding. * Manufacturing of EVs like cell phones are made… It is opening up its powertrain and car electronics for outside use. DiLink could open this up to other manufacturing that don’t have this skillset. Deal with Changan (10 GWh battery factory) could be the model of the future. * Wang Chuanfu envisions 1 trillion yuan revenue by 2025 which is ~10 times last years revenue. * Huge opportunity to recycle / reuse batteries from buses, trucks, etc... * 52 year old founder that is one of the best entrepreneurs with a long runway in front of him. - Nice diversity across business lines * Consumer cars * Buses, Trucks, Forklifts, etc.. * Energy Storage * PV * Electronics business Link to comment Share on other sites More sharing options...
cubsfan Posted August 8, 2018 Share Posted August 8, 2018 It's disturbing seeing that the LA buses are getting a fraction of the miles originally claimed by BYD. I hope that changes or they have a good explanation. Link to comment Share on other sites More sharing options...
spark411 Posted August 8, 2018 Share Posted August 8, 2018 "Stock is at the same price ($5.34) that DJCO (Munger) purchased last year - who arguably knows a lot about this investment." Is there back up to show that DJCO bought around $5.34? Link to comment Share on other sites More sharing options...
redhots Posted August 8, 2018 Share Posted August 8, 2018 You need to work it out from the 10Ks. It is the HKD position. Munger admits it is BYD at the last annual meeting. Link to comment Share on other sites More sharing options...
Gregmal Posted August 9, 2018 Share Posted August 9, 2018 Bought a starter here tonight at 42. I think it's starting to make sense to pivot outside the US a little bit. China related stuff has been beat down a bit, and unless you are part of the liberal doomsday group, we all know the trade wars will eventually end. Link to comment Share on other sites More sharing options...
deadspace Posted August 9, 2018 Share Posted August 9, 2018 Honest questions for all of you investing in BYD 1) Does this company have any reasonable return on capital? Are you sure? I think its easy to be amazed that they predict that they will 10 x revenue in a few years -- but will expenses also 10x ? 2) can someone point me to Mungers statement of buying BYD for daily journal -- I do not recall hearing that and I thought he has only had the same 4 stocks in that portfolio WFC BAC USB PKX Link to comment Share on other sites More sharing options...
alpha Posted August 9, 2018 Share Posted August 9, 2018 I have been buying more. Here are my quick notes. Thanks for sharing your notes redhots. Earlier in the year there was some headlines about BYD spinning off it's battery manufacturing business. Can anyone comment on that? Link to comment Share on other sites More sharing options...
LounginMKL Posted August 9, 2018 Share Posted August 9, 2018 https://www.sec.gov/Archives/edgar/data/783412/000143774918002649/djco20180215_8k.htm "In the informal discussion portion of the 2018 Annual Meeting, the Company’s Chairman, Charles T. Munger, commented that the Company owns shares of BYD Company Limited (trading symbol: BYDDF), a manufacturer of automobiles, buses, batteries and other products, which is listed on The Stock Exchange of Hong Kong Limited." Link to comment Share on other sites More sharing options...
Spekulatius Posted August 9, 2018 Share Posted August 9, 2018 Net Margins are about 4% and have bounced around this level for years. Valuation is rich st 25x earnings. All their business lines (cars,batteries) have commodity type margins. This does not look like an obvious buy to me. At 10x earnings maybe. Link to comment Share on other sites More sharing options...
Guest Schwab711 Posted August 9, 2018 Share Posted August 9, 2018 The actual EV car portion of the company is still trading at very high multiples (~30x EBIT). BYD owns a ~66% stake in publicly traded BYD Electronic, which make mobile phone accessories and trades at 5x EBIT. Edit: I made a mistake. I only meant the EV car part. Link to comment Share on other sites More sharing options...
spark411 Posted August 9, 2018 Share Posted August 9, 2018 Would you mind sharing the ticker symbol for BYD Electric? Currently I see three options for investing in BYD. I thought all three were for the parent company BYD. BYDDF BYDDY 1211.HK Link to comment Share on other sites More sharing options...
Guest Schwab711 Posted August 9, 2018 Share Posted August 9, 2018 Would you mind sharing the ticker symbol for BYD Electric? Currently I see three options for investing in BYD. I thought all three were for the parent company BYD. BYDDF BYDDY 1211.HK BYDIF 285.HK Link to comment Share on other sites More sharing options...
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