Charlie Munger's Investment Strategy Thrives Amid the 2008 Global Financial Crisis

Berkshire Hathaway's $10 Billion BYD Windfall: A Contrarian Bet on a Chinese EV Pioneer

In the midst of the 2008 global financial crisis, when fear gripped markets and investors rushed to safety, Charlie Munger, the late investing legend, spotted an opportunity that would go on to become one of the most profitable bets in the history of Berkshire Hathaway. At Munger's insistence, Berkshire Hathaway acquired nearly 10% stake in the Chinese electric vehicle (EV) maker BYD for $225 million in 2008. This contrarian investment during one of the worst financial crises eventually turned into a multi-billion-dollar success story, with Berkshire reportedly earning profits of around $10 billion by the time it substantially exited the investment in 2025.

The investment was not just about the business, but also the extraordinary founder behind it. According to Munger, he was "betting on the horseman" at that time. He was convinced by the exceptional leadership of Wang Chuanfu, the founder of BYD. In a video clip of Munger speaking at the 2017 Daily Journal Annual Meeting, he described Wang Chuanfu as a "genius" with an unusual combination of traits rarely found in business leaders.

Munger highlighted BYD's technological strength, particularly its ability to absorb and develop entirely new technologies. He also pointed to the company's workforce as a competitive advantage, noting the scale and dedication of its employees. At the time, Munger remarked that BYD employed hundreds of thousands of workers who could achieve things "you can't believe."

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The investment ultimately became one of Berkshire Hathaway's most successful international bets. Berkshire purchased nearly a 10% stake in BYD for $225 million in 2008 through its subsidiary MidAmerican Energy (now Berkshire Hathaway Energy). As BYD emerged as a global EV powerhouse and rival to companies such as Tesla, Berkshire gradually trimmed its holdings over the years. By 2025, the investment had generated an estimated profit of around $10 billion.

Berkshire Hathaway fully exited Chinese automaker BYD in 2025, ending a 17-year investment that grew over 20-fold in value in that period. A filing by Berkshire's energy subsidiary recorded the value of its BYD investment as zero as of the end of March 2026, down from $415 million at the end of 2024.