2011: Is BYD still an attractive an investment?

CAROL LOOMIS: Warren and Charlie, both of your expressed a very positive view of BYD and its chairman, Wang Chuanfu, when MidAmerican bought its stake in 2008.

Does BYD remain as attractive a long-term investment now as it was when you acquired your stake?

If so, why? Has BYD’s recent pattern of unexplained product launch delays affected your confidence in the operation?

WARREN BUFFETT: Charlie is the BYD expert, so I’m going to let him start on that one.

CHARLIE MUNGER: Well, of course, the price is still way higher than the price Berkshire paid, and so almost by definition it’s not quite as cheap as it was then.

Any company that tries to move as fast as BYD does, and on as many fronts, is going to have various delays and glitches. But I would say I’m quite encouraged by what’s going on, and I expect delays and glitches.

They had trouble in the auto distribution, but they tried to double auto sales every year for six years, and it worked the first five times. (Laughter)

WARREN BUFFETT: I have nothing to add. (Laughter)