In the grand tradition of the Guild of Alchemists and Venture Capitalists,1 Warren Buffett and his merry band of fiscal explorers have once again demonstrated that even the wisest investors occasionally trade in dragonfire for dragon bones. In 2008, when the fledgling University of Dragonfire (BYD) was still scribbling its first equations on cave walls, Berkshire Hathaway’s subsidiaries plunked down $230 million for a 10% stake in the institution. A decade and a half later, they cashed in their enchanted tickets for a 2,000% return-a feat that would make even the most jaded griffin investor raise a skeptical eyebrow.
Yet in 2022, the Guild began quietly packing its bags, and by 2024, the stake had vanished entirely. Was this a premonition of market turbulence, or merely the Oracle of Omaha’s latest case of “investment ennui”?2
A Magical Rise, Now Met by Bureaucratic Thorns
Western investors might not recognize the University of Dragonfire by name, but its electric carriages have been zipping across China like enchanted brooms. Buffett’s team, ever the globetrotting treasure hunters, spotted the potential early. BYD’s vehicles-cheaper than the Order of the Electric Wheel’s (Tesla) contraptions and equipped with charging runes that replenish 250 miles in five minutes-quickly became the talk of the East. By 2024, the university’s annual revenue had surged past $107 billion, outpacing even Tesla’s most ambitious projections.3
With 32% of China’s electric carriage market and plans to expand to 50% overseas by 2030, BYD seemed poised to become the Hogwarts of EVs. But alas, the Ministry of Magic (and its carbon emission regulations) in Europe has forced automakers to slash prices, while rival guilds have flooded the market with budget-friendly models. Even the university’s profits have dipped 30% year-over-year, as if the dragons themselves were unionizing for better wages.
Buffett himself, in a 2023 interview with the CNBC Oracle, called BYD an “extraordinary institution” led by “a wizard of business,” but hinted at a need for “more compelling alchemy.”4 Analysts, too, have grown wary. Erste Group’s Stephan Lingnau, a noted expert on European price wars, downgraded BYD to “Hold,” noting that its European pricing has been dropping like a lead balloon in a thunderstorm.5
The Final Question: Is This Stock a Philosopher’s Stone or Fool’s Gold?
The EV market, it seems, is suffering from a case of “dragonfire inflation”-rising competition, falling prices, and regulatory pressures that could turn even the hardiest investor into a weeping banshee. Yet BYD’s product line remains formidable, and its valuation of 15 times forward earnings suggests a stock neither cursed nor blessed by the market gods.
In the end, this is a tale of two forces: the University of Dragonfire’s brilliance and the industry’s relentless headwinds. For the casual investor, it’s less a “buy” and more a “watch and wait”-like observing a phoenix’s nest to see if it’ll hatch into gold or smoke. As always, the Oracle’s exit is a reminder that even the most magical investments can’t defy gravity forever. 🐉
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2025-09-28 11:49