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Is the Electric Vehicle Market in Trouble? Warren Buffett’s BYD Sale Analyzed · Earn Your Leisure

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  Speaker 3: Warren Buffett's Berkshire Half Boy trims its stake in Chinese
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  Speaker 3: eth maker EYD to six point nine. Is this a
• 2:06
  Speaker 3: bad sign for the EV market?
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  Speaker 4: Yeah? And Elon got that big payout.
• 2:14
  Speaker 5: Oh man, my man hit the stanky leg on stage
• 2:17
  Speaker 5: when he got us payout. Now he's talking about robots
• 2:21
  Speaker 5: that he wanted to sell for twenty thousand. Now I
• 2:24
  Speaker 5: got vilified for premium pricing. He want to tell you
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  Speaker 5: a robot that is gonna do your dishes? Okay, one
• 2:31
  Speaker 5: day we're going to have a great conversation about the mallarkey.
• 2:35
  Speaker 5: I'm gonna clean it up because I want you to
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  Speaker 5: just struck us behind the entire EV space?
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  Speaker 4: Does the EV space actually use more energy?
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  Speaker 5: And even though it's supposed to be a sustainable option,
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  Speaker 5: GM is eating Tessel's lunch for a car company of
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  Speaker 5: the year.
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  Speaker 4: If you looking based on returns, I like BYD. I like.
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  Speaker 5: The car, I like the company. But if he's traming
• 3:01
  Speaker 5: his stick in it, there's a reason why. And here's
• 3:04
  Speaker 5: a note that people may want to write down. If
• 3:08
  Speaker 5: Warren Buffett does something, it's usually because he has an
• 3:12
  Speaker 5: inside information from Builderberg Group counselor on foreign relations or
• 3:17
  Speaker 5: that government that we will never have access to to
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  Speaker 5: probably five or six years later, I think the entire
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  Speaker 5: EV space is in shambles.
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  Speaker 4: And you know who help kill it.
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  Speaker 5: Jensen EV was the semiconductor space four years ago.
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  Speaker 4: Hasn't given the return.
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  Speaker 5: So TESSELA is down byd even though I think it's
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  Speaker 5: a better company. The space overall is down. So I
• 3:41
  Speaker 5: would be very cautious over the next couple of years
• 3:44
  Speaker 5: if this sector is going.
• 3:45
  Speaker 1: To do well or not all right, So this this
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  Speaker 1: headline might be a little bit misleading. So bad sign.
• 3:51
  Speaker 1: Anytime you're declining a position, I don't know if it's
• 3:55
  Speaker 1: always a bad sign. So the position that they had
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  Speaker 1: prior to this was they had it was a seven
• 4:02
  Speaker 1: percent uh, holding it right, seven percent. They went to
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  Speaker 1: six point seven point three right, not seven flat. Okay,
• 4:10
  Speaker 1: it's at six point nine.
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  Speaker 2: Yeah, I'm not right now.
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  Speaker 1: They bought and this is and he gives credit to Recipeace,
• 4:18
  Speaker 1: Charlie Monger, this is all his billion idead. But b
• 4:21
  Speaker 1: bid solid company, like you just said, they actually passed
• 4:25
  Speaker 1: Tesla to be the number one battery powered vehicle. Oh
• 4:30
  Speaker 1: in the world. They bought this in two thousand and eight.
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  Speaker 1: Since two thousand and eight, bid has run up six
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  Speaker 1: hundred percent.
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  Speaker 2: Yep, that's a large number.
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  Speaker 1: The investment was two hundred and thirty million for twenty
• 4:46
  Speaker 1: two hundred and twenty five million shares, so they put
• 4:48
  Speaker 1: two hundred and thirty million. That's going up six hundred percent.
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  Speaker 1: They've taken some chairs off the table.
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  Speaker 5: When Warren starts your trim, though, does the does he
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  Speaker 5: can you to trim or then add back?
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  Speaker 2: Historically he doesn't add back, but.
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  Speaker 5: He's still tell yeah, no, no, no, you're right, right, liketally, right,
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  Speaker 5: But once he starts cutting, that's the same thing I
• 5:13
  Speaker 5: said about Apple. Once he hit that like he do,
• 5:16
  Speaker 5: like I do in my relationships, once I start to
• 5:18
  Speaker 5: go no, it's over with.
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  Speaker 1: Yeah, well that's what I was going to use as
• 5:21
  Speaker 1: an example. Right, if we're talking about trimming, he did
• 5:24
  Speaker 1: trim some Apple shares, Yep. Not the end of the
• 5:28
  Speaker 1: world for Apple. It's still the number one holding right
• 5:31
  Speaker 1: in Berkshire currently yep. Currently, So I mean, yes, that
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  Speaker 1: doesn't mean that the space is great, right when when
• 5:39
  Speaker 1: we're talking about sales and the enthusiasm around it and
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  Speaker 1: who in the new innovative companies inside of it, will
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  Speaker 1: it be consolidation, How will the you know, traditional automotives
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  Speaker 1: react where they respond to you know, new emission legislation,
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  Speaker 1: all these things that are varying over the next five
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  Speaker 1: or six years. But yeah, I just context is important, right, So,
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  Speaker 1: like if we're talking about seven percent, now you have
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  Speaker 1: six point nine. Not the end of the world, but yeah,
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  Speaker 1: not the best sign in the world that he's shrimming.
• 6:09
  Speaker 5: I'm a Shoty's commentary. We will monitor the situation, and
• 6:12
  Speaker 5: it was months he gonna come back. Meanwhile, GM opened
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  Speaker 5: up at what thirty five, seventy three? There, forty seven
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  Speaker 5: and Elon got a fifty nine billion dollar pay package
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  Speaker 5: in the last two years and start down sixty percent, and.
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  Speaker 1: They was trying to get him down to what thirteen million?
• 6:27
  Speaker 1: You having that take fifty six billion?
• 6:32
  Speaker 4: Try that a lot of my boy clean? Now you
• 6:36
  Speaker 4: got to pay out. Hey, listen, I'm mad.
• 6:38
  Speaker 5: Did some ketemine two file was waiting on fifty five boy,
• 6:41
  Speaker 5: give my money what he was extremely a common on
• 6:46
  Speaker 5: this mouse pad of a car, and y'all won't pay me.
• 6:49
  Speaker 4: Hey, pay up, pay up? An, I'm moved to Austin.
• 6:53
  Speaker 5: Gotcha, gotcha, We'll play Eli Supreme Pustler.
• 6:58
  Speaker 3: Talking about the energy set, the Kinonco Phillips has agreed
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  Speaker 3: to acquire Marathon Oil in an all stock deal valued
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  Speaker 3: at seventeen billion. How does impact the energy sector and shareholders?
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  Speaker 3: And why aren't you the biggest fan of the energy sector.
• 7:17
  Speaker 4: I don't have a few people have asked me this.
• 7:20
  Speaker 4: I don't know.
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  Speaker 5: If they are here in Texas and just love energy,
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  Speaker 5: I don't. I mean, I think that Sign is one
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  Speaker 5: of the biggest players and they always will be. I
• 7:27
  Speaker 5: just think there's better returns elsewhere, I think there's more
• 7:30
  Speaker 5: safety and apple. I don't have to worry about the
• 7:32
  Speaker 5: cyclical stuff of energy. Of course, in video amd A
• 7:39
  Speaker 5: like is the energy sector better than the pharmaceutical sector
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  Speaker 5: or healthcare?
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  Speaker 4: No? So for me, it's not about emotion, and I
• 7:49
  Speaker 4: think it's a really good lesson.
• 7:50
  Speaker 5: You have to invest based almost going to give you
• 7:52
  Speaker 5: highest return and not based on a feeling. Now that
• 7:56
  Speaker 5: feels nineteen eighty, maybe I would go more energy focused,
• 8:00
  Speaker 5: but we're not in nineteen eighty. Clearly healthcare is having
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  Speaker 5: a dominant forest, semiconductors and technology doing a hell of
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  Speaker 5: a lot better. I don't have to worry about the
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  Speaker 5: timing of it or political wars like you know, almost
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  Speaker 5: the tech sector is almost unbreakable, if you will, and
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  Speaker 5: those geopolitical factors that are not there. So it's not
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  Speaker 5: that I don't like it, but I just think there
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  Speaker 5: are a couple of sectors that are dramatically better.
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  Speaker 2: Yeah, I'm with you.
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  Speaker 1: I think the cynical nature of it right when it's
• 8:29
  Speaker 1: in season for somebody that's just starting, that's tough to
• 8:33
  Speaker 1: really comprehend. The tough to follow, But there isn't interesting.
• 8:36
  Speaker 1: There's something interesting happening inside of the energy sector. I'm
• 8:39
  Speaker 1: gonna run up some numbers for you to give context
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  Speaker 1: to it. Right, So you spoke about Exxon. Exxon purchase
• 8:46
  Speaker 1: Pioneer for sixty billion dollars, right, sixty billion. Ye, Chevron
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  Speaker 1: is direct competitor, agreed to take over HATS for fifty
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  Speaker 1: three billion dollars. Goodbye, yep. Oxidam Petroleum. We just spoke
• 9:01
  Speaker 1: about one Buffett. You know, he's definitely invested in them.
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  Speaker 1: They bought Crown Rock for eleven billion dollars. Uh, Diamondback
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  Speaker 1: Energy acquired Endeavor Energy Partners for twenty six billion. So
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  Speaker 1: I'm seeing a lot of cash flow inside the space,
• 9:17
  Speaker 1: right solid, and we're seeing that's other things I say,
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  Speaker 1: we're seeing a lot of consolidation, which is interesting because
• 9:27
  Speaker 1: that is something that could be cyclical when you start
• 9:29
  Speaker 1: talking about different sectors. When I was just talking about
• 9:32
  Speaker 1: the EV will there be consolidation. The problem is inside
• 9:36
  Speaker 1: the EV space, which is unlike this one, which this
• 9:39
  Speaker 1: capital here.
• 9:42
  Speaker 5: Thank You's M two money supply has not affected this
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  Speaker 5: sector at all.
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  Speaker 4: There's a lot of money and energy.
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  Speaker 1: Yeah, there's a there's a lot of money in it,
• 9:53
  Speaker 1: and there's no slowdown, right, A lot of times we
• 9:56
  Speaker 1: need to be less dominant oil reliant on No, this
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  Speaker 1: doesn't show that.
• 10:02
  Speaker 2: These numbers don't show that this number us regulation.
• 10:05
  Speaker 5: If you're gonna be honest, there's a lot of posturing
• 10:06
  Speaker 5: around the regulation. Not really like a lot of these
• 10:10
  Speaker 5: mergers and acquisitions that have happened and no one's it
• 10:14
  Speaker 5: hasn't made the front page of Bloomberg or.
• 10:16
  Speaker 2: Baron Ship right now. I have to go look these
• 10:19
  Speaker 2: things up.
• 10:19
  Speaker 1: This is just something like when we hear the tech
• 10:23
  Speaker 1: acquisitions or potential acquisitions, it's always like, oh, there's a
• 10:26
  Speaker 1: monopoly for me. Yeah, this this board is being formed
• 10:30
  Speaker 1: pretty clearly here. There's gonna be about maybe six to
• 10:34
  Speaker 1: ten of these companies that are just gonna dominate, and
• 10:38
  Speaker 1: it's set up right there that they're set up.
• 10:40
  Speaker 2: To dominate for the future.
• 10:41
  Speaker 1: When you're talking about all these mergers and the ones
• 10:44
  Speaker 1: I just ran off for four that have happened in
• 10:46
  Speaker 1: the past probably twelve months, Yeah, something.
• 10:51
  Speaker 4: That's going to be maybe next on it.
• 10:53
  Speaker 5: If there someone gets Duke Energy for a great price,
• 10:56
  Speaker 5: be a great steal, and we'll consolidate and see a
• 10:59
  Speaker 5: big four like we're doing everything else. And then but yeah,
• 11:02
  Speaker 5: with tech getting all the focus, and then video it
• 11:05
  Speaker 5: was metaphor a while, and then Apple, they've slowly, you know,
• 11:10
  Speaker 5: I've begun to consolidate quietly, and then at some point
• 11:14
  Speaker 5: two of them will partner up and take over a
• 11:16
  Speaker 5: tessela or an eed space and put them underneath their way.
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