Warren Buffet Still Confident in BYD Investment

BYD, the Chinese electric car company, has seen sluggish sales such that you think that someone who had invested $230 million in them would be getting a little nervous. That does not seem to be the case for Prophet of Omaha, Warren Buffet.

Buffet recently gave an interview to Reuters in which stated that he expects that environmentally friendly cars will provide him with a “sizable profit” in approximately five years. This, despite BYD stock having dropped substantially since the initial surge it received after Buffet’s big investment. It closed today at HK$42.6, a long way down from the HK$ 84 peak it hit after Buffet’s $250 million injection.

Buffet pointed to BYD’s upcoming green buses and long-term electric vehicle plans as his route to environmentally friendly economic gains. The first half of 2010 saw a strong start for BYD but the third and fourth quarters saw sales and expectations cut.

Will Buffet once again predict the future accurately, or will the Prophet of Omaha meet his match with this sizable investment in a Chinese electric car company?