Last Year I Cleared Out Baijiu Stocks, Went All-in on BYD, and Got Trapped 26%

@表舅是养基大户：Yesterday, BYD held its shareholders' meeting, where one shareholder, having lost money by going all-in on BYD and getting trapped, asked Chairman Wang a question. The gentleman poured out his grievances for quite a while, which can be roughly summarized as follows:

1. After reading Charlie Munger's books, I took Munger's words as gospel, so I'm also bullish on BYD.

2. Last year, I cleared out my baijiu stocks, went all-in on BYD, and got trapped 26%.

3. Chairman Wang only has one company, but I've put my entire family's money (including my son and daughter-in-law's) and even corporate funds all into BYD—just one single stock.

4. I'm a long-term investor, but I came from a rural background, I'm 67 years old, even older than you. I've struggled my whole life, and now that I'm trapped, I can't eat or sleep well.

5. I believe in BYD, the core of which is believing in the leader. If the leader is good, the company is good; if the leader is bad, the company is bad.

6. BYD's VP said on a program that the company is undervalued, so why haven't they bought back shares? We small shareholders are suffering too much.

Frankly speaking, there are so many points to critique that I hardly know where to start. I'll just interpret them one by one based on what this gentleman said.

First, Munger built his position in BYD in 2008, started reducing it in 2022, and cleared it out by early 2025. Brother, you can't still be treating middle school textbooks as your bible when you're about to take the college entrance exam, right? If you truly believed Munger and were a long-term investor doing deep research, the news of Berkshire Hathaway clearing out BYD was all over the internet—how could you have missed it?

Second, clearing out baijiu to buy BYD actually generated excess returns, because baijiu performed even worse. Doesn't thinking about it that way make you feel a bit better? The core issue is, as an adult, why do you keep doing multiple-choice questions between A or B—either clearing out everything or going all-in?

Third, Chairman Wang only has one company, but he can have other investments and family trusts. Focusing on one company in your work is called "dedication," but going all-in on a single stock in investing is called "gambling." Even Munger, at the peak, only held a maximum of 3% BYD in his portfolio. Why don't you learn to diversify?

Fourth, I've never heard of a long-term investor who starts wailing after being invested for just over a year. Being trapped by 20-something percent and losing sleep over it essentially means you shouldn't be buying stocks at all, let alone betting everything on a single stock—this isn't long-termism, this is "lock-up-ism."

Fifth, just because you lost money, don't engage in subtle moral kidnapping. Stock price falling = company is bad = leader is bad, without ever examining your own problems. An entrepreneur's responsibility is to make good products, develop good technology, and manage cash flow, profits, competitiveness, and globalization well. They have no obligation to guarantee that a certain investor will make money within a year after buying at a certain price. Listed company management can be responsible for the company's long-term value, but not for all shareholders' purchase costs.

Sixth, the last question actually has some value—I'll answer it for Chairman Wang: When a company is in a phase of global expansion, technological iteration, price wars, intelligentization investment, overseas factory construction, and channel building (and in the most brutal competitive phase), cash may have more important uses, such as R&D investment, capacity layout, overseas markets, supply chain control, autonomous driving, battery technology, etc. If the cash in the company's hand can create higher returns by being invested in the main business, then not buying back shares may also be rational.

Finally, the gentleman said he also took his son and daughter-in-law's money to go all-in. If the "son and daughter-in-law" can see this article, please get your money back quickly. Because with a father like this, if he doesn't lose money on BYD, he will sooner or later lose it somewhere else.