Data from the Hong Kong Stock Exchange showed that Berkshire (BRK.A.US), the investment flagship of Warren Buffett, further reduced its stake in BYD (01211.HK, 002594.SZ) on November 1.

Since the second half of this year, the Hong Kong Stock Exchange has disclosed three times Berkshire's record of reducing its stake in BYD, but in fact, the amount of the reduction is more or more than the total disclosed.

According to HKEx data, the total number of disclosed three sales was 6.34m shares. However, if the amount of shareholding changes, the difference between the two is larger. After the reduction on November 1, 2022, Berkshire's holdings of about 196.7 million shares compared with 225 million shares before the reduction began, a difference of 28.235 million shares.

In other words, as of November 1, Berkshire has reduced its holdings by 28.235 million shares and now holds 196.77 million shares (November 1, 2022).

If the total cost of holding the 225 million BYD shares is $232 million, the cost of each BYD share is about $1.031, or about HK $8.09.

Byd's current Hong Kong share price of HK $198.50 implies a further pre-tax gain of HK $37.667 billion, or US $4.773 billion, if Berkshire liquidated its position at the current price.

Compared with the high of 333.00 Hong Kong dollars of BYD's H shares on June 28 this year, the current price is discounted by 40.39%, but who can grasp the "singularity" of selling at the highest level and buying at the lowest level, and can earn a return of 23.5 times is quite good.

Similarly, the fair value of Berkshire's equity investment (that is, the share price at the end of the reporting period) will differ from the beginning of the period (the end of 2021), because global equity markets largely peaked in the first quarter of this year and then fell sharply following the Fed's tightening and rate hike cycle.