Li Lu cashes in $2.4b on BYD shares

Himalaya Capital, founded by Li Lu, sold BYD (1211) shares for two consecutive days last week to cash in a total of HK$2.44 billion.

The investment firm's holdings of the Chinese battery and auto carmaker fell by more than 1 percent to 6 percent, following the sale.

Himalaya Capital sold 7.144 million BYD H-shares at an average price of HK$227.6 last Thursday, followed by 3.6275 million H-shares at HK$224.2 per share last Friday.

Li Lu is best known for introducing BYD to Charlie Munger and Warren Buffett. According to BYD's 2020 annual report, Himalaya Capital is the second-largest shareholder after Buffett's Berkshire Hathaway.

BYD shares fell as much as 7 percent to HK$216.4 after the market opened before closing 5 percent lower at HK$221 yesterday.

Li Lu made his first investment in BYD as early as 2002, and his shareholding has unabated and kept increasing for years. In 2008, he introduced BYD to Warren Buffett when the cost price was only HK$8 per share at that time.

Following the sale, Himalaya Capital holds 62.8791 million shares worth HK$13.9 billion, based on yesterday's closing price.