Is BYD the Smartest Investment You Can Make Today?

BYD (BYDDY 4.05%), China's largest automaker, has seen its stock surge nearly 330% over the past five years. The rally was fueled by explosive sales growth, market share gains, overseas expansion, and technological advancements. Despite macroeconomic headwinds—pandemic disruptions, inflation, geopolitical tensions, and tariffs—BYD outperformed peers in the automotive sector.

The company began as a battery manufacturer three decades ago before venturing into automotive production in 2003. Its pivot to new energy vehicles (NEVs) gained momentum after 2020, reversing years of stagnant sales. Berkshire Hathaway retains a 4.4% stake, a rare endorsement from Warren Buffett for a Chinese stock.

Key challenges include subsidy reductions and intensifying competition. Yet BYD's dominance in NEVs and vertical integration—from batteries to整车—positions it uniquely for the EV era. The question remains whether its valuation reflects future growth or overheated optimism.