1 Unusual Warren Buffett Growth Stock Down 34% to Buy in 2023

Motley Fool2023-01-31

Savvy investors watch closely the purchases of Berkshire Hathaway, headed by investing legend Warren Buffett. And in the third quarter, the company initiated positions in three entirely new companies....

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supre
2023-01-31
supre
I'm so grateful to Mrs Teresa Fuller for making me believe online trading. I never thought any of this was real and I was so scared of losing my money.now I benefit alot from Teresa Fuller Platform on Facebook
Longs
2023-01-31
Longs
👌🏼🙏🏼

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And in the third quarter, the company initiated positions in three entirely new companies....</p>\n\n<a href=\"https://www.fool.com/investing/2023/01/30/1-unusual-warren-buffett-growth-stock-down-34/\">Source Link</a>\n\n</div>\n","source":"fool_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>1 Unusual Warren Buffett Growth Stock Down 34% to Buy in 2023</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n1 Unusual Warren Buffett Growth Stock Down 34% to Buy in 2023\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-01-31 15:13 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2023/01/30/1-unusual-warren-buffett-growth-stock-down-34/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Savvy investors watch closely the purchases of Berkshire Hathaway, headed by investing legend Warren Buffett. And in the third quarter, the company initiated positions in three entirely new companies....</p>\n\n<a href=\"https://www.fool.com/investing/2023/01/30/1-unusual-warren-buffett-growth-stock-down-34/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0417517546.SGD","symbol_name":"Allianz US Equity Cl AT Acc SGD","start_time":0,"source_url":"https://www.fool.com/investing/2023/01/30/1-unusual-warren-buffett-growth-stock-down-34/","article_id":"2307786537","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2307786537","pubTimestamp":1675149234,"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"Buffett and Berkshire caught the market off guard by buying this stock.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","BRK.B":"伯克希尔B","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","LU0234570918.USD":"高盛全球核心股票组合Acc Close","IE00B3S45H60.SGD":"Neuberger Berman US Multicap Opportunities A Acc SGD-H","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4581":"高盛持仓","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","BK4535":"淡马锡持仓","BK4543":"AI","BK4527":"明星科技股","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","BK4550":"红杉资本持仓","LU0321505868.SGD":"Schroder ISF Global Dividend Maximiser A Dis SGD","LU1280957306.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQUITIES \"AUP\" (USD) INC","LU1914381329.SGD":"Allianz Best Styles Global Equity Cl ET Acc H2-SGD","LU0234572021.USD":"高盛美国核心股票组合Acc","LU0321505439.SGD":"Schroder ISF Global Dividend Maximiser A Acc SGD","BK4579":"人工智能","BRK.A":"伯克希尔","BK4551":"寇图资本持仓","BK4141":"半导体产品","LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","INTC":"英特尔","LU0251142724.SGD":"Fidelity America A-SGD","BK4512":"苹果概念","BK4575":"芯片概念","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","LU0149725797.USD":"汇丰美国股市经济规模基金","LU0971096721.USD":"富达环球金融服务 A","BK4529":"IDC概念","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H","BK4528":"SaaS概念","TSM":"台积电","BK4515":"5G概念","BK4554":"元宇宙及AR概念","LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","BK4023":"应用软件","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","LU0742534661.SGD":"Fidelity America A-SGD (hedged)","BK4176":"多领域控股"},"translate_title":"1只不寻常的沃伦·巴菲特成长股下跌34%，将于2023年买入","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TSM":0.9,"BRK.B":0.9,"BRK.A":0.9,"INTC":0.6},"content_text":"Savvy investors watch closely the purchases of Berkshire Hathaway, headed by investing legend Warren Buffett. And in the third quarter, the company initiated positions in three entirely new companies. While its investments in building materials manufacturer Louisiana Pacific and investment banking firm Jefferies Financial Group were familiar buys in the Berkshire investing mold and constituted relatively small investments, the third new portfolio addition was eye-catching.Berkshire Hathaway purchased 60 million shares of Taiwan Semiconductor Manufacturing Company (TSM -0.16%), which was worth approximately $4.1 billion at the time of publication of the investment conglomerate's most recent 13-F filing in November. The big buy made TSMC Berkshire Hathaway's 10th-largest overall stock holding and marked the first time that it had held a position in a pure-play semiconductor company since it exited a small position in Intel back in 2012.Read on to see why investors might wish to follow Buffett's lead and build a position in this chip industry giant.Image source: The Motley Fool.TSMC is a clear-cut industry leaderWhile Berkshire has warmed up to the technology sector in recent years, it's well known that Buffett has preferred to avoid companies with highly complex, highly technical businesses. That makes TSMC something of an unusual portfolio component for Berkshire, as chip fabrication represents an extremely complicated corner of an extremely complicated industry.On the other hand, the Oracle of Omaha also famously prefers to invest in companies with strong moats, and that's a quality TSMC has in spades.There are many companies out there that design their own semiconductors, and investors may be able to score big wins by backing one competitor in a category over another or identifying players that could be on the verge of big breakthroughs or product wins in valuable niches. But when it comes to actually manufacturing chips, one company dominates the field -- and that's TSMC.TSMC commands incredible technology, resource, and scale advantages, and it will be incredibly difficult for competitors to move in on its turf. The company has a stellar track record of delivering quality products on schedule, giving it reputational advantages in addition to technological superiority. Customers know that they can rely on TSMC to get their orders done right, and tech companies are rarely eager to test out a new supplier when crucial performance is on the line.The company accounts for an astounding 55% of global contract semiconductor manufacturing. When it comes to the much more profitable, high-performance chip market, TSMC's dominance is even more pronounced. The fabrication giant controls more than 90% of the contract manufacturing market for the world's high-end chips.A fantastic business and attractive valuationSpurred by strong demand in key categories and upgrades to new, high-performance chip nodes, TSMC has been posting impressive business results lately. Revenue in the company's fourth quarter rose 26.7% year over year to reach $19.9 billion. For a hardware-oriented business, the fab giant also posts very strong margins. In Q4, the company recorded a gross margin of 62.2%, an operating margin of 52%, and a net profit margin of 47.3%.Despite the impressive performance, TSMC stock has fallen roughly 24% over the last year, and shares trade down roughly 34% from their lifetime high. Like many other tech stocks, the company has seen a big valuation pullback in conjunction with high levels of inflation, rising interest rates, and the possibility of an extended recession.The company's valuation has also been pressured by geopolitical factors, including the possibility that China will exert more control over Taiwan and the U.S.' moves to ban certain manufacturing equipment and artificial intelligence (AI) chips from being sold to China.While the stock has regained some ground lately, the shares still look attractively valued -- trading at roughly 16.4 times expected forward earnings.TSM PE Ratio (Forward) data by YChartsTSMC also has appeal from a dividend perspective, with the stock yielding roughly 2% based on today's share price.Investors should move forward with the understanding that the semiconductor industry has historically been cyclical, and it's likely that TSMC will see demand moderate in the event of a prolonged economic downturn. But the integration of chips into a wider array of products, the increasing digitization of the global economy, and ascendent technology trends including AI and cloud computing also appear to be moving the chip industry away from its traditional cyclicality and closer to secular growth.TSMC stands out as a top pick-and-shovel play for benefiting from the long-term growth of the global semiconductor industry. The stock might look like an unusual pick for Buffett and Berkshire Hathaway, but I think there's a good chance that long-term investors will score wins by following Buffett's lead on this one.","kind":"highlight","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9955942946,"gmtCreate":1675167933986,"gmtModify":1676538981131,"author":{"id":"4138270331761452","authorId":"4138270331761452","name":"supre","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"4138270331761452","authorIdStr":"4138270331761452"},"htmlText":"I'm so grateful to Mrs Teresa Fuller for making me believe online trading. I never thought any of this was real and I was so scared of losing my money.now I benefit alot from Teresa Fuller Platform on Facebook","listText":"I'm so grateful to Mrs Teresa Fuller for making me believe online trading. I never thought any of this was real and I was so scared of losing my money.now I benefit alot from Teresa Fuller Platform on Facebook","text":"I'm so grateful to Mrs Teresa Fuller for making me believe online trading. I never thought any of this was real and I was so scared of losing my money.now I benefit alot from Teresa Fuller Platform on Facebook","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9955942946","repostId":2307786537,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9955926416,"gmtCreate":1675153213836,"gmtModify":1676538979881,"author":{"id":"4115290449563752","authorId":"4115290449563752","name":"Longs","avatar":"https://community-static.tradeup.com/news/824b5073731ab909a8d4e129caa8d995","vip":1,"crmLevel":6,"crmLevelSwitch":0,"idStr":"4115290449563752","authorIdStr":"4115290449563752"},"htmlText":"👌🏼🙏🏼","listText":"👌🏼🙏🏼","text":"👌🏼🙏🏼","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9955926416","repostId":2307786537,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":32,"commentSize":2,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2307786537"}