Should You Buy Warren Buffett's Favorite EV Comapny?
Warren Buffett and electric vehicles (EVs) aren't typically discussed in the same sentence, but if you look at Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio, it's evident he's interested. The 10th-largest position in Berkshire's portfolio is BYD (OTC: BYDDY), a Chinese automaker focused on EVs.
So should you follow Buffett's lead and purchase this stock? Or is this one that's best left to the experts? Let's find out.
Investing in Chinese companies comes with many challenges. First, they aren't subject to the same regulatory framework as U.S. companies. Some accounting and auditing rules aren't always consistent with what U.S. shareholders come to expect from their investments. Plus, it's harder for U.S. investors to verify that BYD vehicles are exploding in popularity without boots-on-the-ground research of their own.
Source Fool.com
