1. Does Warren Buffett own the next Tesla?
March 2, 2014
BYD Company Limited Ticker: 1211:HK

2. Disclosure!
Longboard
Asset
Management,
LLC
(“Longboard”)
is
an
investment
advisor
to
funds
that
are
in
the
business
of
buying
and
selling
securi>es
and
other
financial
instruments.
Longboard
currently
has
a
long
posi>on
in
BYD
Company
Limited
(“BYD”)
common
stock.
We
do
not
own
any
op>ons
on
BYD
common
stock.
Longboard
will
profit
if
BYD
stock
increases
in
value
and
will
lose
money
if
it
decreases
in
value.
Longboard
may
change
its
views
about
or
investment
posi>on
in
BYD
at
any
>me
for
any
reason
or
for
no
reason.
Longboard
may
buy,
sell,
cover
or
otherwise
change
the
form
or
substance
of
its
BYD
investment.
Longboard
disclaims
any
obliga>on
to
no>fy
the
market
of
any
such
changes.
The
informa>on
and
opinions
expressed
in
this
presenta>on
(the
“Presenta>on”)
is
based
on
publicly
available
informa>on
about
BYD.
Longboard
recognizes
that
others
may
disagree
with
Longboard’s
analyses,
conclusions
and
opinions.
The
Presenta>on
includes
forward-­‐looking
statements,
es>mates,
projec>ons
and
opinions.
Such
statements,
es>mates,
projec>ons
and
opinions
may
prove
to
be
substan>ally
inaccurate
and
are
inherently
subject
to
significant
risks
and
uncertain>es
beyond
Longboard’s
control.
Although
Longboard
believes
the
Presenta>on
is
substan>ally
accurate
in
all
material
respects
and
does
not
omit
to
state
material
facts
necessary
to
make
the
statements
therein
not
misleading,
Longboard
makes
no
representa>on
or
warranty,
express
or
implied,
as
to
the
accuracy
or
completeness
of
the
Presenta>on
or
any
other
wriPen
or
oral
communica>on
it
makes
with
respect
to
BYD
and
Longboard
expressly
disclaims
any
liability
rela>ng
to
the
Presenta>on
or
such
communica>ons
(or
any
inaccuracies
or
omissions
therein).
Thus,
shareholders
and
others
should
conduct
their
own
independent
inves>ga>on
and
analysis
of
the
Presenta>on
and
of
BYD
and
other
companies
men>oned.
The
Presenta>on
is
not
investment
advice
or
a
recommenda>on
or
solicita>on
to
buy
or
sell
any
securi>es.
Except
where
otherwise
indicated,
the
Presenta>on
speaks
as
of
the
date
hereof,
and
Longboard
undertakes
no
obliga>on
to
correct,
update
or
revise
the
Presenta>on
or
to
otherwise
provide
any
addi>onal
materials.
Longboard
also
undertakes
no
commitment
to
take
or
refrain
from
taking
any
ac>on
with
respect
to
BYD
or
any
other
company.
As
used
herein,
except
to
the
extent
the
context
otherwise
requires,
Longboard
includes
its
affiliates
and
its
and
their
respec>ve
partners,
directors,
officers
and
employees.
For Investment Professional Use Only
2

3. Introduction!
§ In
this
presenta.on
we
outline
our
case
for
the
success
of
BYD
Company
Limited
and
how
the
current
zeitgeist
surrounding
Tesla
will
translate
into
a
substan.ally
higher
stock
price
for
BYD
§ BYD
is
an
under
told
and
undervalued
story
which
is
now
coming
to
light
§ The
large
rela.ve
valua.on
gap
between
BYD
and
Tesla
will
be
closed
with
a
substan.al
upside
revalua.on
for
BYD
shares
as
their
story
becomes
more
mainstream
in
the
years
ahead
3

4. Is BYD going to $200?!
§
§
§
§
The
success
of
Tesla
has
kicked
off
a
global
zeitgeist
Tesla
and
BYD
are
the
Coke
and
Pepsi
of
the
global
transporta.on
and
energy
revolu.on
BYD
Company
Limited
200
175
?
150
BYD
is
an
under
told
and
undervalued
story
which
is
now
coming
to
light
The
large
rela.ve
valua.on
gap
between
Tesla
and
BYD
will
be
closed
with
a
substan.al
upside
revalua.on
for
BYD
as
their
story
becomes
mainstream
in
2014
125
100
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Jan-­‐15
Apr-­‐15
Jul-­‐15
Oct-­‐15
§
We
believe
BYD
will
trade
above
$100
within
18
months
and
$200
within
5
years
4

5. Who the #$&% is BYD?!
§
§
§
§
§
10%
owned
by
Warren
Buffet’s
Berkshire
Hathaway
World’s
largest
rechargeable
baUery
manufacturer
Fastest
growing
Chinese
auto
company
#1
electric
bus
manufacturer
in
the
world
#1
hybrid
and
pure
electric
car
manufacturer
in
China
5

6. Wang Chuanfu is China’s Elon Musk!
“He’s
a
combina.on
of
Henry
Ford,
Thomas
Edison
and
Bill
Gates”
-­‐
Charlie
Munger
Vice
Chairman,
Berkshire
Hathaway
Referencing
BYD
CEO
Wang
Chuanfu
(pictured
right)
6

7. BYD Long Term Integration Strategy!
3
key
energy
technologies:
§ Electric
Transporta.on
§ Energy
Storage
Systems
(ESS)
§ Renewable
Energy
Genera.on
7

8. Transportation : Plug In Hybrid!
§ Top
selling
model
Qin
§ 0-­‐62
MPH
in
5.9
seconds
§ 177
miles
per
gallon
§ Top
speed
115
MPH
§ Global
Market
8

9. Transportation : BYD K9 Bus!
§ Pure
Electric
Bus
§ 30
hours
of
drive
.me
between
charge
in
NYC
MTA
tests
§ Less
than
30%
of
the
opera.ng
cost
per
mile
rela.ve
to
diesel
bus
§ U.S.
version
assembled
in
California
§ Global
Market
Design
§ Coming
to
a
city
near
you…
9

10. Transportation : Pure Electric Vehicle!
§ Denza
(new
brand)
§ 50/50
Partnership
between
Daimler
and
BYD
§ Designed
specifically
for
the
Chinese
consumer
§ Mercedes
B
Class
design
§ Mid
2014
launch
§ Tesla
alterna.ve
in
China
10

11. Energy Storage Systems (ESS)!
§ Very
well
posi.oned
in
the
emerging
energy
storage
market
§ Unlike
Tesla
they
are
currently
producing
ESS
at
industrial
scale
§ Exis.ng
ESS
represent
the
largest
completed
energy
storage
projects
on
the
planet
§ Ver.cal
integra.on
and
proven
capacity
to
scale
produc.on
11

12. Energy Storage Systems : !
Market Opportunity!
§ Energy
storage
is
a
500+
Billion
dollar
market
opportunity
§ Posi.oned
as
a
global
leader
in
the
segment
§ BYD
is
very
far
ahead
of
firms
like
Tesla
who
want
to
enter
the
business
Energy
Storage
Market
Poten.al
Grid-­‐Scale
Energy
Storage
($B)
$150
$120
$90
$60
$30
$0
$114
$30
2014
2015
2016
2017
§ Lux
Research
-­‐
$114
B
by
2017
§ Piper
Jaffrey
-­‐
$600
B
market
over
10-­‐12
years
§ Boston
Consul>ng
Group
-­‐
$400
B
market
by
2020
§ EPRI/DOE
-­‐
annual
savings
of
$50
billion/
year
via
energy
storage
Plenty
of
market
poten.al…
for
the
right
product
at
the
right
price
12

13. Investment Catalyst!
§ Tesla’s
success
story
has
put
electric
transport
on
the
global
center
stage
§ The
recent
announcement
of
the
Tesla
“Gigafactory”
has
added
the
“energy
play”
to
the
conversa.on
as
well
an
addi.onal
mul.
billion
dollar
premium
to
Tesla’s
valua.on
§ BYD
has
recently
been
an
undersold
story
aner
its
early
2008
success
with
Warren
Buffet
taking
a
10%
stake
in
the
company
§ The
current
rela.ve
valua.on
gap
between
Tesla
and
BYD
is
now
3-­‐1
in
favor
of
Tesla
§ We
believe
the
market
is
beginning
to
recognize
the
true
value
of
BYD
and
will
begin
to
price
in
a
similar
Tesla
growth
premium
to
BYD
shares
§ The
market
is
hungry
for
the
“next
Tesla”
and
BYD
is
well
posi.oned
to
ride
that
wave
on
a
number
of
fronts
§ We
see
the
market
filling
the
rela.ve
value
gap
with
an
upside
re-­‐pricing
of
BYD
shares
to
$100
within
the
next
18
months
13

14. About Longboard!
An
alterna>ve
approach
to
naviga>ng
the
investment
ocean
Longboard
is
an
asset
management
firm
specializing
in
trend
following
strategies.
The
firm’s
principals
have
been
inves.ng
in
and
researching
trend
following
strategies
since
the
late
1990s.
We
manage
both
private
investment
funds
and
mutual
funds
applying
our
trend
following
investment
style.
“Trends
come
like
a
series
of
ocean
waves,
bringing
the
high
.de
when
things
are
good
and,
as
condi.ons
recede,
the
low
.de
appears.
These
trends
come
unexpectedly,
unpredictably,
and
they
have
to
be
weathered
with
temperance,
poise,
and
pa.ence-­‐
good
or
bad.”
Jesse
Livermore,
Reminiscences
of
a
Stock
Operator
14

15. Contact Us!
To
learn
more
about
Longboard,
connect
with
us
at:
info@longboard-­‐am.com
602.910.6961
2355
East
Camelback
Road,
Suite
750
Phoenix,
Arizona
85016
www.longboardmutualfunds.com
www.longboard-­‐am.com
For
media
inquiries,
please
contact:
Courtney
Jardine
courtney@longboard-­‐am.com
617.467.4139
15