This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Asia's Buffett Gets Into Battery Business

Stocks in this article: BRK.A F JCI

NEW YORK ( TheStreet) -- Li Ka-shing's recent investment in Jia Sheng Holdings shows that the businessman may be taking his nickname as the "Warren Buffett of Asia" to heart. The move closely mirrors a similar bet made by the Oracle of Omaha that earned the investor big returns through 2009.

Jia Sheng Holdings, which has a niche in the Hong Kong market as a brokerage and investment firm, recently took steps to go in a new direction. The company plans to spend HK $2.75 billion to purchase Union Grace Holdings to gain control of Thunder Sky Energy Group, which produces batteries for electric cars.

The recent developments draw interesting parallels to Buffett's investment in the Chinese electric car and battery company, BYD. In September 2008, Buffett paid nearly $2 billion for a 10% stake in this firm which, at the time, was relatively unknown outside of China.

With the growing popularity of environmentalism and electric car prospects, the small firm, once mainly known for producing cell phone power sources, has grown to become one of the most recognizable car companies in not just China, but around the world.

In the time since the bet was made, BYD has grown to become the fourth largest car maker in China and shares of firm have ballooned five-fold. In return, Buffett and Berkshire Hathaway (BRK.A - Get Report) have pocketed billions.

Li Ka-shing's Jia Sheng investment is considerably smaller than that of Professor Buffett. However, the Hong Kong businessman's 400 million shares which, together translate into a 2.5% stake in the firm, still set him back nearly $38 million. These funds will be used to pay for the company's efforts to build battery factories.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs