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sclim · 05-09-2022, 12:27 PM

byd is a good ev manaufacturer. the price is a different thing. at pe 167 means it will take 167 years to recover capital if no growth. so even if it can double profit every year it will take 5 years to bring down to pe 5+

don't be silly to chase an overvalue stock. even warren is selling out. you think you better then that organization?
there is this famous stock talker who keep talking about how good how sexy byd is and also gold 9 silver 10 month. all the bull shit. how he and his gang holding a lot of byd at a lost and unable to unload. don't be their rubbish dump.
dyodd

cityhantam · 13-09-2022, 09:36 AM

8月SUV销量前5名排行，国产车2款上榜，夺得榜首，日系车通通沉船
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sgbuffett · 13-09-2022, 02:24 PM

(05-09-2022, 12:27 PM)sclim Wrote: byd is a good ev manaufacturer. the price is a different thing. at pe 167 means it will take 167 years to recover capital if no growth. so even if it can double profit every year it will take 5 years to bring down to pe 5+

don't be silly to chase an overvalue stock. even warren is selling out. you think you better then that organization?
there is this famous stock talker who keep talking about how good how sexy byd is and also gold 9 silver 10 month. all the bull shit. how he and his gang holding a lot of byd at a lost and unable to unload. don't be their rubbish dump.
dyodd

Everything has a price and BYD price is high.
I started buying at 100 but stopped once it get to overvalued territory. Buffett buying price is $8 so he sell at 23X price of $260 is a big gain for him

However is BYD valuation " far fetched" and crazy? J would say no.

Here is why

1. BYD is realistic to be No 1 or No 2 in EV market which will overtake petrol car market. Toyota is $200B valuation BYD is now 100B.

2. BYD js number 2 battery maker . Number 1 is CATL. CATL has only battery business valuation is 100B. So BYD battery business which is more than half of CATL should be 50B.

3. China car industry has this single chance to be world dominant and BYD is the frontrunner for this. Chinese govt will ensure its policy is supportive. ..

No doubt valuation is on the high side but EV industry is in early stage and still growing rapidly. PE ratio is a poor guide because BYD is selling competitively to capture market and tk achieve scale. Once if monetise its market share it will be worth much more and PE will go down as margins expand.

Buffett typically does not but growth stocks with this level or risk and prospects. He was persuaded by Munger to buy BYD.
It is understandable he wants to cash out to buy stocks like Apple with moats and immune to competition...more his style.

But for growth oriented investors BYD remains a good investment. Growth investors are more used to the risk and uncertainty of this type of stocks. BYD may double or triple in next 5yrs but can also drop 80%. The risk is managed by diversification.

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