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Warren Buffett explains decision to sell TSMC stake amid geopolitical tensions

Date Published:
Author: CML News


Warren Buffett sold most of Berkshire Hathaway’s stake in TSMC due to geopolitical tensions and the company's preference for deploying capital elsewhere.



  • Berkshire Hathaway sold 86% of its shares in TSMC, which was considered unusual due to Buffett's reputation for making long-term bets.
  • Buffett stated that TSMC was well-managed, but the company had "better places" to deploy its capital.
  • TSMC is a key player in the semiconductor industry, supplying Apple and Qualcomm, and mass produces the most advanced semiconductors in the world.
  • The company is considered a national treasure in Taiwan and plays a vital role in the global economy, earning it the nickname "silicon shield" against a potential military invasion by Beijing.
  • Tensions between Taiwan and China have recently escalated after China conducted military exercises simulating "joint precision strikes" on the island.
  • Taiwan and China have been governed separately since the end of a civil war more than seven decades ago.

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