BYD Stock Is A Buy If They Keep Growing (even if just as slow as Tesla)

BYD stock is a stock to buy on the risk and reward situation, however it is a growth stock and all depends on future growth, especially international expansion.
0:00 BYD Stock
2:03 EV Business Growth
6:34 Financials
8:01 Investing Risk & Reward
Lithium Sector Analysis • 5 Lithium Stocks & Det...
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[@skostik]

Hi, Sven. Thanks for sharing your thoughts! Highly appreciated! I wonder if you could also comment on: 1. Lucid - It's down from $60's to $2.5 - (unlike BYD, it is not profitable though) is it a 'good buy' today or is it a total trash? As a side note: American producers (F, GM) recently announced that they cut their EV production plans amid lower than expected demand that they see.... I think BYD (and others) might feel that too in the coming year or two. 2. What's your take on China-related stocks today? They are pretty cheap today, compared to 1-2 years ago. For instance BABA, which you covered in multiple videos in recent years, seemed as a good / robust investment back then, event at $200-300; today it is below $70 - did you revisit your valuation / rating recently?

[@Value-Investing]

1. I don't know, those are mostly gambles, we will see how it will end up 2. China is cheap :-)

[@Duuj1]

Hi Sven! Thanks for posting so ofter. Im seeing value in Alibaba and JD. What are your tought ? 1 profitable 2 trading at low multiples 3 well maneged . Also, the technicals indicate that the stock could go lower however i think they will do great in the long term.

[@Value-Investing]

those are now cheaper than ever, but there is a difference between the two... a big one

[@ajbahlam]

@@Value-Investing JD has its own supply chain, while Alibaba has a presence in the financial and cloud computing sectors. Which one is the big difference you mentioned?

[@maximussympatico8787]

Just go ahead and check his research platform. It's all there.

[@KM-qx7pn]

I learned my lesson ,stayed away from Chinese stocks ….

[@johnmonk3381]

If you want to be the fool that keeps losing money while others are making the big bucks, be my guest

[@mikkelhansen3714]

One other risk with BYD, is that i believe it's heavily subsidized by the CCP. This could be the reason for high gross margins, would be problematic if they stopped it. Furthermore, the EU/US may increase tariffs on chinese car manufacturers, if they flood the western markets

[@brunoheggli2888]

The world is big even without the US and Europa and japan korea there is a big market for BYD

[@patrickhui8360]

U are absolutely right. We can find the hidden CCP support amount roughly from their financial report.

[@phantomcreamer]

​@@brunoheggli2888 Where is this magical large market that demands Chinese EVs outside of the West?

[@mikkelhansen3714]

@@brunoheggli2888 Yeah well it wouldn't be the end of the world for BYD but it certainly would not be good

[@SilkBoyFighter]

Just wanted to write that, that's what Europe is trying to fight now, the unfair advantage of being subsidized by China which makes European cars irrelevant until BYD crashes because China is entering/is in a recession then there will be no money to subsidize and pump BYD's price artificially. Oh and don't forget about big competition from other companies which enter this market more slowly but are more reliable like Japanese car makers (Toyota & Honda❤)

[@lisadziuba6988]

Love your videos! On the BYD: what's your on current downturn on the stock? It's just crushing now...

[@Value-Investing]

everything in China just keeps falling

[@randy74989]

BYD, the New Energy Vehicle company that Americans are ignorant about. However, Warren And Charlie (Berkshire Hathaway) bought in to the company in 2008. I discovered it in 2021, and have invested ever since as part of my long-term portfolio (IRA). I can wait out the ups and downs. Just remember they are building plants in Hungary and Indonesia. I believe they will soon build a plant in Mexico, so that they can exp[ort them to Canada and America without export tax penalties. We shall see. They are the largest INTEGRATED EV manufacturer in the World. Overtook TSLA in 4qt. 2023. They only build HEVs and EVs plus EV buses and have a plant in Los Angeles and most employees are Unionized. BYD now has over 30 industrial parks and production bases worldwide, with a total area of over 18 million sq. m., amongst which some are located outside of China, like factories in US, Brazil, Japan, Komarom Hungary, and India.

[@WindSass]

Such a flex to have margin of safety book in the background

[@Value-Investing]

ah, I think it is a fake book, but the value is the words, not the cover

[@TidusVen]

Great video Sven!

[@Value-Investing]

Thanks!

[@rraych1132]

There seems to be a lot of complaints about BYD car quality. What are your thoughts or concerns about these issues?

[@Value-Investing]

I didn't check into that, thanks for sharing!

[@phvaessen]

The quality issues reported don't concern the new EV models

[@rraych1132]

kzbin.info/www/bejne/pJqZcqSVpLR9ftUsi=M5MZ9MY2LIifTQvN

[@marklalonde7996]

@@Value-Investing Maybe look into BYD batteries spontaneously combusting.

[@stormchasingandinvesting]

I bought shares byd for 22,5 usd. I am a big believer of this brand. The risk is limited and there is a moat building ❤

[@Eline_Meijer]

My risk management philosophy can't let me invest in a sector with +100 competitors I know nothing about. Out of my league.

[@Value-Investing]

:-) smart

[@kaiomiguel7493]

This is a great channel, but I strongly recommend see Ben Felix too. It's just awesome.

[@Eline_Meijer]

@@kaiomiguel7493 Didnt Ben Felix promoted FTX last year?

[@scottjackson6817]

Thanks! Quick profits a few years ago and then got out. Nowhere in years. Just a dog. I would stay away until it shows better signs of profits.

[@Value-Investing]

Thanks for sharing

[@jasoncloner4816]

THanks Sven, Thanks BYD

[@Value-Investing]

thanks for watching!

[@alext1723]

Looking at all the comments, fells like everyone is scared of Chinese stocks and the sentiment is so low that it must be the best time to invest! Only time will tell... Maybe BYD can become the next Toyota and be a pretty good company and investment, or maybe they'll end up like all the forgotten/discontinued brands (Pontiac, Plymouth, Saab, Hummer...)... Who knows.

[@ExilSvensk]

People are just in the know of China. China is screwing around with western car companies and banning as an example Tesla’s in some cities etc. it’s just a matter of time for retaliation. Then we have the fact that China is already in a recession and the CCP are running out of money. I also think that buying Chinese stock is supporting a communist regime. So no thanks. Money is not that important for me that I’d support Marxists

[@Value-Investing]

yes, China, now or never

[@mazharsoufi5270]

Thank you for the analysis but Buffett is very smart at holding value stocks, didnt he just sell it?

[@Value-Investing]

yes he did!

[@galanoth17]

But isn't he keeping most of it? I thought he only sold a few percent?

[@christophernash1846]

@@Value-Investing He sold 45 % and booked billions on a $230 million investment. They haven't sold any more in months

[@paultweedley2026]

Great insight, yes for me the Chinese government is to unpredictable and as we've seen don't hesitate in fineing Chinese companies billions or hundreds of millions for any kind of unfair play in their eyes, I'll pass as I've been burned already with BABA

[@Value-Investing]

thanks for sharing

[@roberttaylor3594]

I have learnt the hard way to listen when you say something is a buy ;). or a sell... Buffett sold when the price levelled off, looks like.

[@Value-Investing]

There is a buy, which means positive risk and reward ( can go anyway) and there is a margin of safety value buy

[@MrDrunkNFunky]

Tempting, but I just don't know enough about Car/EV companies to feel confident about choosing the one to rule them all.

[@Value-Investing]

thanks for sharing!

[@elrevesyelderecho]

My issue with EV cars is the amount of money governments are spending helping customers to buy. Can governments keep the pace of financially inflating the demand? Considering debt, interest rates and budget deficit ? How much is the real demand / how many customers are really capable of paying for Evs. Ok. Perhaps we can catch a demand pick over the next couple of years, but later on? Put money on it to see how much you can get in 1 or 2 years?

[@Value-Investing]

thanks for sharing!

[@user-km3hv8qo9p]

BYD’s exported cars are this year reviewing with higher scores than US and European manufacturers for both safety and reliability. We had better start learning from China before we fall further behind.

[@spreadsheetdoctor]

ADM was one of the stock you identified as an essential stock. It is trading 10% low today. Maybe its time for a review.

[@Value-Investing]

will check!

[@Preachingtothebirdspodcast]

Check the stock now boss dog!

[@johnosullivan2197]

BYD is A very popular EV in Thailand,

[@Value-Investing]

thanks for sharing!

[@cubertmiso]

@@Value-Investing that's a bot that you are replying to. jezz.

[@Naturallygreencleaning]

They sold electric buses to the city of Lancaster in California about two years ago, that was a proud day for me.

[@Value-Investing]

thanks for sharing!

[@jonnes__4657]

🗽 There are now very few cheap stocks I watch... very strange situation. 🤔 .

[@Value-Investing]

:-)

[@francoislemoine8840]

can they really enter the US? US market looks closed to most Chinese brands atm

[@lilylee8201]

BYD can keep car prices down because it controls every link in the supply chain, and it even invests in lithium mines. Apple also wants to do this, but the United States does not have such a strong supply chain to support it. All new energy vehicle manufacturers in China can receive subsidies, so this is not the reason why they can drive down prices. BYD is an automotive industry company, while Tesla is more like technology companies such as Huawei and Xiaomi that sell smart driving. There is no comparison between the two.

[@user-cf2px2ko8y]

Would not even touch it with a 10 feet pole...

[@Value-Investing]

thanks for sharing!

[@user-uk2sk8yt8z]

Why BYD (BYDDF) stock trading in PINK?

[@Value-Investing]

because it is not listed in the US

[@methosb]

Been looking at CN EVs lately but it is really hard to decide who is worth investing in. BYD is the obvious choice just because of production numbers and infrastructure, but... Their cars are trash. Li Auto is interesting because they make better cars, have a lot of cash, low debt and their sales are increasing. If you are looking at just who makes the best car then Xpeng. If you are looking at popularity because of familiarity the AITO (Huawei). If you are looking at integration with other devices under the same roof then Xiaomi. If you strongly believe in battery swapping then NIO. Just so many different companies it seems like a real gamble to back any single one.

[@Value-Investing]

Thanks for sharing!

[@nonexistent5030]

I think certain Chinese stocks have less risk than others. This one has much higher risk than others in different sectors/industries. US & Europe do not want China EVs to be commonplace in their countries, introduces unnecessary cyber risk. A stock like BABA has much less risk as they simply handle retail and their other businesses do not need to expand into US/Europe to be successful. Maybe China EVs can grow in sales for other Asian countries and LATAM but Chinese leadership indicated they will reduce EV subsidies as well. There are more interesting risk/reward opportunities out there than this one, in China and otherwise.

[@vusalzeynalli3035]

If Sven says a company is a buy - this means DONT BUY :) we all learned it well in last years. Everything what Sven says comes out vice versa.

[@kashganja]

Risk to eu could be some kind of tax as they are dumped so cheap now.

[@Value-Investing]

could be, good point!

[@decus9544]

Seems about fairly valued to me. Some comparisons to Tesla and such, but that's meaningless to me, just means Tesla should be at $40 per share at best, and $30 more reasonably.

[@Value-Investing]

thanks for sharing!

[@Backfromthestorm]

Tesla is more than a car manufacturer though.. For now

[@decus9544]

@@Backfromthestorm 95% of its revenue is from selling cars, it is a car company ;D

[@Backfromthestorm]

@@decus9544 it's more like 80% I think.. Around 18% are others and they are growing

[@extramild1]

Charlie Munger might have the stomach for Chinese stocks but I sure don't - pass!!

[@Value-Investing]

thanks for sharing!

[@rc-boy11]

This is the Samsung instead of Buffet's Apple.

[@Value-Investing]

Good one!

[@jasoncloner4816]

Electric viking covers byd a lot

[@brunoheggli2888]

Why would you listen to the electric bullshitter?

[@Value-Investing]

thanks for sharing

[@roberttaylor3594]

Well, Elon seems concerned enough to obliquely ask for tariffs….

[@Value-Investing]

:-)

[@derjager5706]

BYD halt ! 👌

[@Value-Investing]

Thanks for sharing!

[@mihaidaniel8373]

The real question is "Will Tesla get a 10% dump or pump net week?" because of the earning😂

[@Value-Investing]

:-)))

[@siggiAg86]

“70% of investing is sizing and timing” That timing of Munger’s investment in the past was spot on. And if the size had been bigger back then… like 2 billion invested of 200 million - ouch!!

[@Value-Investing]

2 billion would had been 200% of the company :-)

[@cubertmiso]

I've been here for a long time, and the only thing that makes me uneasy about the stock is that there are videos like this. I hope I'm wrong, but there's over a 50% chance that I'm not.

[@Value-Investing]

:-)

[@cubertmiso]

@@Value-Investing Too many retail investors vs institutions. But thankful for the video.

[@davidscott2298]

Virtually every Chinese stock is cheap on paper. If I closed my eyes to political risk I'd be 100% long China equities right now but I have to limit myself to 10% extra weighting. In 20 years if the CCCP take our shares away we'll know they were cheap for a reason. If that never materialises everyone will say how easy it was to throw money in here now. How obvious it was.

[@Value-Investing]

good point!

[@thomashelveg7563]

Worth to remark that this is one and Pinduoduo are among those Chinese companies for which CCP and Taiwan Risk do not apply! These are investible, unlike Baba 😂

[@dindjarin3956]

could you share more on that, if possible

[@Value-Investing]

Thanks for sharing

[@fredwinslow744]

Sven Of buffet got out ( value investing logic ) And munger didn’t want to be in on the first place because auto is a hard market … Why exactly do you think it’s a good value investment when buffet is out and munger was never in ( RIP) ???

[@Value-Investing]

did you comment without watching the whole video, don;t try to be smart here :-)))

[@christophernash1846]

Wrong ! Munger was the one that told Buffett about BYD. They bought $230 million in stock and sold 45 % of the holding for billions in profit. They still have about 52 % of the investment. Please do better research before posting.

[@tsonez]

I would not invest in car makers. It’s akin to investing in airplane or steel making - extreme competition, old product so no great margin-improving leaps from innovation expected, low margins in general, national interests causing market distortion and operational inefficiencies. Luxury car makers are somewhat better.

[@Value-Investing]

good point!

[@tsonez]

I talk about moat and long-term investment perspective. Regards to BYD, perhaps it may work out in 1-2 year timeframe, but at long-term the risks and possible negative catalysts outweigh the positives. Sven talks about some of the big negatives towards the end of the video. In the long-term you want business moat, and commodities like cars don't have any.

[@channel4ferrets]

BYD has to sell 6 cars to make the same profit as Tesla does with one car. And that's when you value Tesla only as a car company.

[@peterbarrett5496]

Dude why? These reports of evs customer experience are devastating

[@Value-Investing]

thanks for suggesting!

[@inevitablelogic]

Markets have been repeated proven wrong about Tesla so far, markets having a strong buy on BYD based on this merit is actually a negative. BYD is a buy for anyone comfortable with China risk BYD shouldn’t be compared to Tesla at all, they are different businesses They have EV in common. Tesla is a mission oriented latest in tech AI Robotics company

[@Value-Investing]

thanks for sharing

[@vegas_vince1238]

That headline is misleading. It includes hybrids. If you compare 100% EV's to 100% EVs Tesla is the leader and will remain so for quite some time.

[@Value-Investing]

nope, doesn't include hybrids, just pure EV

[@channel4ferrets]

Q4 2023 BYD actually sold more bEV's than Tesla. But it's one quarter. Does it matter? Nope, look at profit margins. BYD has tot sell 6 cars to make the same profit as Tesla does.

[@fmgraca]

🔥🔥🚗🚗🔥🔥....🤣🤣🤣🤣🤣🤣

[@Value-Investing]

:-)))

[@paull3179]

Byd has quality problems in China and they ignore their customer complaints and sometimes even kill the cars remotely especially if they are headed to a social gathering to complain about the cars. Many have been catching fire too. No comparison with Tesla.

[@paull3179]

And any figures being released by Chinese companies are manipulated numbers and a high chance of fraud.

[@Spasmomen]

Well that didn't age well. More than 5% down since this video.

[@Value-Investing]

watch the video till the end

[@jeremynewell9903]

99.9% of the know universe of stocks are "a buy compared to Tesla"

[@Value-Investing]

haha

[@iurevych]

As a Ukrainian I would not underestimate Chinese risk. We were also hoping nothing would materialize, and the rest is history.

[@LDP..]

What about the CCP and their crackdown on the expansion of the EV ?

[@Value-Investing]

crackdown? with record sales?

[@LDP..]

Xin Guobin, vice-minister of industry and information technology, said that Beijing would take “forceful measures” to address what he called “blind” construction of new EV projects-i.e., not justified by demand-by some Chinese carmakers and local authorities, as reported by the Financial Times. Do you think this might affect BYD ?

[@freekem1867]

Lol this is too funny

[@Value-Investing]

happy it makes you smile :-)

[@brunoheggli2888]

China south east asia africa and central and south america!

[@Value-Investing]

yes!

[@ZelenoJabko]

-15 percent in a week

[@Value-Investing]

that is the stock market!

[@deadstone3991]

You don’t look objective regarding Chinese stocks. First time I see you mentioned forward p/e metrics 😂😂😂 I’ll remember that.

[@pornstarpat]

Current TTM P/E is 18.

[@pornstarpat]

TIKR says the PE is 37. The cheapest it has been.

[@Value-Investing]

thanks for sharing, but you should maybe watch the whole vid before commenting...

[@realestalex2728]

Investing in China feels too much like speculating on the mood of the CCP. Maybe you will be right or maybe not, but exceptional managerial performance should dictate how good a company is, not whether or not the CCP likes you and is willing to throw money at you.

[@Value-Investing]

Thanks for sharing!

[@Debatom]

For every 1 car sold BYD has almost 2 cars in stock, so huge inventory. I would recommend not buying the stock!

[@Value-Investing]

thanks for sharing!

[@davidcunningham2074]

i wouldn't buy any Chinese EV company.

[@Value-Investing]

thanks for sharing!

[@Bedievis]

Investing in CCP, no thanks, we are not learning anything i guess

[@Value-Investing]

thanks for sharing!

[@gusdrago]

BYD is a chinese company, chinese stocks are not investable.

[@Value-Investing]

thanks for sharing!

[@Michael-Wil]

Did you miss the elephant in the room!?! The US has a 27% import duty on Chinese cars. I kinda get the impression someone else did 30 mins research and gave it to you to present.

[@Value-Investing]

Yes, and their growth focus is Europe and Latam!

[@Michael-Wil]

@@Value-Investing I don't think you read my comment properly.

[@yusufozarslan1796]

Good deal but it is a chinese stock,this alone tells much

[@Value-Investing]

thanks for sharing!

[@ClearlyNutz]

This will not age well.

[@cristianabrambilla2236]

Too dangerous china investing... Nobody can know if the data are truth/false or if the governament interacts or if the deflation continues or if the debt increases or the disoccupation ... So many risks do not compense the possibile reward, in my opinion

[@Value-Investing]

I wish your comment would apply only to China, and not to the whole world these days....

[@cristianabrambilla2236]

@@Value-Investing true!!! 🤣 But less then china! 😉

[@larryevans6739]

Audited by Ernst and Young.

[@Mythdoubt]

Never invest in China.

[@Value-Investing]

thanks for sharing

[@erikm9768]

The risk is that CCP just decides that they need that BYD cashflow , hard to buy any chinese stock for this reason

[@Value-Investing]

thanks for sharing!

[@antonkostornichenko2666]

I wish you a luck if you invest in totalitarian country!

[@Value-Investing]

thanks for sharing!

[@valueinvestor8555]

Don't be fooled. There is massive competition in China from other Chinese EV makers. Geely Group, GAC Aion, SAIC Group, Chang'an Group, Li Auto, Xpeng, Nio etc etc many more. BYD were among the first to really scale production and are good at cost management and vertical integration. But others are not really behind in terms of technology Xiaomi launches its first EV and Huawei is already cooperating with 5 other EV makers to roll out their software. BYD has plenty of competition. You would have to be naive to think that Western "legacy" OEMs won't also sell millions and millions of competititve EVs in the next years. The price war will continue, no end in sight.

[@daudkaun3807]

Well put. Keep in mind, this all the more bearish on Tesla if what you say holds which I think is what Sven is driving at.

[@brunoheggli2888]

The best is to not invest in the carsector at all!But if you realy want,BMW is my favorit!

[@Value-Investing]

thanks for sharing

[@genotriana3882]

I wonder how that will play out. Perhaps, there will be some mergers and others will go out of business to allow for higher margins in the future. I would like to know if the margins are good despite the competition. I don’t think people will continue to pay $50k for a small, not-so-luxurious Tesla.

[@jeffjones114]

yeah, but they are expanding into other markets, india, indonesia, europe, russia