Warren Buffett On BYD, Unions and Detroit

I recently had an amazing once in a lifetime opportunity to attend a Question and Answer session with Warren Buffet. Among the numerous questions answered by Mr. Buffett were a few about the auto industry. First up was a question about Buffett's recent vote of confidence in BYD amid rumors that he might sell his share. Famous for not investing in companies and industries that he does not understand personally, Buffett nevertheless believes that BYD will succeed. Buffett’s reasons behind his optimism about BYD are not based on the company’s battery expertise but are rather much simpler and fundamental.
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WorldofLuxury - 10/25/2010 4:11:47 PM

+1 Boost

Just do what he does... not like BYD is the best and most promising Chinese brand, but as long as one follows Buffet carefully, there will be profits.

Remember that if you were planning to do the same thing has Buffet was, it doesn't mean that your idea was amazing - it just means you are psychic.

chewy - 10/25/2010 4:59:33 PM

+1 Boost

Design wise their cars aren't the best but with their battery expertise and the driven CEO I can see why Buffett made the investment.

thstone - 10/25/2010 4:29:28 PM

+1 Boost

I learned everything that I needed to know when you said "Caddy DTS".

chewy - 10/25/2010 8:02:12 PM

+2 Boost

I am going to disagree, I think his track record speaks for itself. And I don't see how the type of vehicle you drive affects your investing skills. While Detroit is making some good products now, the city isn't likely to improve its conditions as quickly.

quizz - 10/26/2010 8:01:17 AM

+2 Boost

Purely speculation on my part, but isn't it possible the reason he bought American was less about wanting a car with "no road feel" and more about patriotism and buying "American"?

MeanVulcan - 10/26/2010 11:08:52 AM

+2 Boost

I think I'll lean towards believing Warren Buffett, after all, he is not one of the richest people on earth due to bad investment decisions. Reality hurts.