BYD disillusioned "the investor" Halo

The obscure BYD's reputation as a new energy vehicle has been widely seen as the best combination of cars and new energy, thanks to Buffett's stake and high profile.　　But what about the facts? Recently, BYD announced the first three-quarter results this year, compared with the same period last year 1.16 billion yuan, the third quarter of net profit plunged 99% to 11.82 million yuan, completely awakened the outside wishful thinking dream. And since this year, China's passenger car sales have been good, but also with BYD's dismal performance formed a stark contrast. On the day of the announcement, BYD's share price fell, falling 10.3% per cent, to a 51.05 Hong Kong dollar, its biggest daily decline in nearly two years. The next day BYD's share price continued to tumble 8.9%, closing at HK $46.5.　　So far, BYD's share price has been nearly half as high as its all-time highs. "The investor" will also see the wrong BYD before the hype and people blindly worship "Warren" Buffett has a great relationship. As early as September 26, 2008, Buffett through the Strategic Investment Subscription Agreement, on the sidelines of an average of HK $8 to buy BYD 225 million shares, accounting for BYD's issued share capital of 39.61%. July 30, 2009, BYD announced that the SFC formally approved Mr. Buffett's Berkshire Hathaway subsidiary of MidAmerican to complete the strategic investment and the purchase of 225 million shares of the new H-share agreement. At this point, Mr. Buffett's stake in BYD finally implemented, holding BYD's total registered capital of about 9.89% shares and has issued a 28.37% share shares. On the day of the closing price of HK $41.65, investment 10 months, Buffett book has benefited nearly HK $7.6 billion.　　BYD's share price reached a peak of HK $88.4 in October 2009 and became Buffett's real "10 times times share". The timing of Mr Buffett's purchase of BYD is really a once-in-a-lifetime, but the reason he is bullish on BYD is that there are pitfalls. He sees BYD as the leader of China's new energy vehicles, the best combination of new energy and cars, which is a big misunderstanding, and a misguided number of investors.　　The electric car is far from the big picture, the future is very uncertain, at least in a few years can not have good performance. In fact, this is more than everyone knows BYD, but since "the investor" is willing to dress him up as a flower, he was embarrassed to pull off the mask, must say that he is actually a dog tail grass. Therefore, in the strategy, BYD is to take a diversion approach to dress up as a new energy vehicle, in fact, the main direction is the traditional power cars. But how could byd compete with the top domestic car companies in traditional power cars?　　So, today's sharp decline in performance is already doomed. Presumably, Buffett should have a sober understanding of this, but he not only did not foresee this point, but also frequently to the BYD, publicly said he will continue to hold BYD shares, at least not this year will not be thrown. I missed the best profit and time to vomit.Said, also let a lot of superstition his investors take medicine, some missed the best time to ship, and some active buy sets.　　Now faced with the collapse of BYD's performance, investors too late.　　"The God of the gods" becomes the Gold tool Buffett is not a person, and it is normal to look wrong. He still has a penchant for BYD, and is "enjoying" the volatility of BYD's share price up and down. In late September this year, Mr. Buffett was invited by BYD to visit several of BYD's research and production bases in China. Buffett at the dinner scene with all the dealers toast to celebrate BYD sales breakthrough millions. Buffett claimed that BYD's outstanding achievements have strengthened his choice to invest in BYD, he will unswervingly continue to support BYD, but also praised the choice of dealers, and believe that the future BYD will be one of China's greatest companies.　　Mr. Buffett also worked with BYD President Wang to open the three green dreams of BYD's "electric cars, energy-storage power plants, solar power plants." In this way, Buffett is not only wrong, but also become BYD's gold tool. According to media reports, BYD to take advantage of Buffett's influence, at any cost, Buffett's visit to BYD, from BYD chartered flight shuttle, costing up to millions of yuan. However, BYD has fallen more than 25% per cent since Buffett left China September 30.　　Now does Buffett feel guilty about it? BYD's quarterly bulletin shows BYD is drifting away from greatness. If BYD were to focus on the new battery industry, it could become one of China's greatest companies, but now it has little chance of competing with the country's top-tier car makers for traditional power cars.　　The so-called "new energy and the best combination of cars," eventually become a legend. Fortunately for a-share market investors, BYD is not listed in the shares, otherwise the Buffett effect will lead to a more frenzied BYD stock price, and eventually let BYD through the refinancing circle to take more money, and investors can only in vain draw new energy car cakes to hunger. If indeed to that time, I am afraid the "investor" can not help them.