# What If You Copied Warren Buffett's Homework Ten Years Ago and Bought BYD?

Suppose there was a retail investor who truly believed in Buffett's investment philosophy.

In early 2016, he saw BYD in Buffett's holdings. Although BYD paid almost no dividends and had a dividend yield close to zero, with a P/E ratio of 50x and stock price around 64 yuan, many people thought it was too expensive to touch. But he chose to trust Buffett.

So he took out 100,000 yuan and bought 1,600 shares at 64 yuan per share.

Over the next four years, the market seemed to work against him. The stock price remained flat or even declined. By 2021, it fell to a low of 36 yuan, representing an unrealized loss of nearly 40%. Dividends were pathetic with dividend yields under 1% year-round.

Worse yet, net profits declined significantly for three consecutive years. Although revenue grew from 100 billion to 150 billion yuan, profits didn't keep pace. The market was filled with skepticism. At this point, most ordinary people would have cut their losses and left. But only two types of people could hold on: those who truly understood BYD's business model—knowing they were investing heavily in electrification and battery technology reserves—and those with absolute faith in Buffett, believing he wouldn't make careless purchases.

He endured the most difficult four years. Then a miracle happened.

Starting from 50 yuan in 2019, BYD entered an explosive growth period. By 2025, the stock price surged to a high of 400 yuan. In five years, the stock price increased eightfold.

Net profit skyrocketed from 4 billion to 40 billion yuan—a tenfold increase.

Recently, BYD's stock price hovered around 90 yuan. Due to stock splits, his share count increased from 1,600 to 4,800 shares.

Account value: 430,000 yuan, plus 15,000 yuan in cash dividends = 445,000 yuan total. Over ten years, 100,000 became 445,000, a 345% return.

Annual compound return rate: approximately 16%, already exceeding most people's investment returns.

But here's the problem: If we rewind to 2016, would we really copy Buffett's homework?

When profits declined for three consecutive years and the stock price was cut in half, could we hold on?

When the stock price tripled in 2023, could we resist greed and not exit early?

When you buy a stock, you're really buying a company and the conviction behind it.

Without understanding the business model, if you buy just because Buffett buys, you'll likely panic-sell at the bottom or exit midway.

*For educational purposes only. Not investment advice.*