Just two days after Chinese automaker Geely announced a profit warning, sending its stock tumbling nearly one fifth, shares in electric car maker BYD have taken a dive.
The electric car maker, in which highly regarded investor Warren Buffett has a 10 per cent stake, has fallen by as much as one half in afternoon trading in Hong Kong. Volumes were nearly seven times the fifteen day average. There was no clear reason behind the fall, writes Lucy Colback, Lex columnist in Hong Kong.
Despite the precipitous drop, Mr Buffett, who is known for his long term approach to investing, may not be moved: at an in price of $8, he is still making money. But the profits on the position are dwindling; the stock peaked at $88 in 2009, one year after Mr Buffett took the position.