S&P 500 Index

SPX
5,137.08
+40.81 (+0.80%)
StockTwits Share  Twitter Share  Facebook Share

Warren Buffett explains decision to sell TSMC stake amid geopolitical tensions





Date Published:
Author: CML News

Lede

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

 

Summary

  • 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.

Long-term Stock Research

Every stock has a story, and the best investors know how to read between the lines, unravel narratives, and identify the true value in the market. We do the research. We watch the businesses.

We interview CEOs and share word-for-word transcriptions.

You get high quality research previously only available to Wall Street insiders; all while having access to a community of investors and finance experts.


Learn about CML Pro by tapping here.