Buffett to Sell Stake in Chinese Automaker BYD?

Warren Buffett and Berkshire Hathaway may be thinking of cashing out of their stake in Chinese automaker BYD, according to a report.
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NEW YORK (TheStreet) -- Warren Buffett and Berkshire Hathaway (BRK.B) - Get Report may be thinking of cashing out of their stake in Chinese auto and battery maker BYD, according to a Reuters report.

In 2008, Buffett's Berkshire Hathaway purchased 10% of BYD for $230 million. The value of the stake has now skyrocketed to a staggering $1.6 billion. Still, this latest figure is slightly less impressive than the $2.5 billion value achieved last October.

The value of Buffett's stake in BYD began to slide as the company encountered troubles this year -- for instance, a setback in plans to export its electric vehicles, a fall in sales and a legal battle with the government involving land development.

Sources that

Reuters

spoke with suspect that Buffett may be mulling the possibility of cashing out a portion of or all of his stake in BYD.

The return may not be a big as the one he would have received if he had cashed out earlier, but it would still, of course, be outstanding.

The billionaire investor will be visiting BYD next week and is, according to

Reuters

, expected to engage in serious discussions with BYD.

During the visit Buffett may raise the possibility of selling his stake in the company,

Reuters

reported.

-- Written by Andrea Tse in New York.

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