To The Moon

First to understand the reasons behind Warren Buffet latest move to exit most of his stake in TSMC, having only started a position in Q3 of 2022, we probably have to approach TSMC accordance to Warren Buffet's investment style. His decision to invest in a company can be broadly based on the few points below -Company is undervalued based on it's intrinsic value -Durable moat -Not swayed by short-term market, willing to invest long term - Focus on management  - Margin of safety Company is undervalued based on it's intrinsic value The go to calculation of intrinsic value is using discounted cash flow model which at present values TSMC around $100-$120 range. Clearly, the company is undervalued based on it's current share price of $90 and even more so when it was estimated that Warren B

It was somewhat surprising when Warren Buffett's conglomerate $Berkshire Hathaway(BRK.A)$ Berkshire Hathaway purchased its first semiconductor stock,$Taiwan Semiconductor Manufacturing(TSM)$  Taiwan Semiconductor Manufacturing last summer. Yet it was even more surprising to learn that Berkshire has already cut its TSMC stake significantly, lowering its holding by 86% in the fourth quarter -- just one quarter after purchasing the stock. TSMC seemed like a solid bet for Berkshire. As the largest outsourced foundry in the world, TSMC makes high profit margins and seems set to benefit from the growth of semiconductors over the long term. So, why might the Oracle of Omaha have already decided to sell

Buffett has only held TSMC for less than half a year, and it has cleared its positions after a large proportion of positions, which is very abnormal here in Buffett, which is characterized by long-term holdings. So, what caused Buffett to clear TSMC? There is a lot of room for reverie in it. 1. The most important reason should be that the uncertainty is higher than he expected. We have reason to believe that from the perspective of financial analysis, TSMC must be Buffett's favorite company. The moat is wide enough (with the world's most advanced 3nm process, high market share, and a dual-oligarchy-like monopoly position similar to Samsung), and long profitability time (continuous profitability in the past five years and an average profit growth rate of more than 10%, and up to 20-30% reve

Changing investment strategy maybe? 

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Taking the safer route Berkshire Hathaway is a name synonymous with legendary investor Buffet. And whatever trades or investments they do, it is normally associated with him. That is not surprising considering the fact that he is the brains behind the company and his lieutenants are all moulded according to his beliefs.  When Berkshire takes a huge position, many take notice. That is a huge vote of confidence for that particular company as the metrics he use is not easy to pass for many. And when he buys, it only means that he sees value but one thing that I believe sets him apart is his willingness to take risks. And that is why he is very particular in looking for companies that are well protected by a moat. When we look at TSMC, we can see that it is a

Maybe he wants cash too invest in about great opportunity?

$Taiwan Semiconductor Manufacturing(TSM)$ $Berkshire Hathaway(BRK.A)$ Warren Buffet is widely regarded as one of the most successful investors in history, with a net worth of over $100 billion. His investment philosophy is focused on buying high-quality companies with strong competitive advantages, holding them for the long-term, and avoiding speculation or market timing. In recent years, Buffet has been increasingly focused on investing in large, established companies with stable earnings and predictable cash flows. This has led him to reduce his exposure to some of his more speculative holdings, such as tech stocks. Taiwan Semiconductor Manufacturing Company (TSMC) i

$Taiwan Semiconductor Manufacturing(TSM)$ Drop Drop Drop. Since Fed talking about interest rate might increase again. the stock start to drop. I believe in long term as TSMC is still strong in chip demand. High end chip like 5-3nm will increase their sale.  Buy now as will bullish. @TigerEvents @Tiger_SG 

$Taiwan Semiconductor Manufacturing(TSM)$ there could be several reasons that I think why Buffett sold this Gem in semiconductor industry. 1) relationship between US - China (risk of war) 2) vast expansion of the company in this inflationary environment. 3) protect the interest of Berkshire shareholders byreducing the risk of investing in TSM.  this is purely my opinion that are not financial advice. Pls DODD before investing. 😉

How come Buffett sold? What has changed since Berkshire's ownership of TSMC was made public in November? It is uncommon for Buffet to sell 86% of a stock so soon after purchasing it. But Berkshire Hathaway isn't the only company selling. According to reports from the regulatory body, other investment firms have also reduced their positions. On January 20, 2023, TSMC revealed its fourth-quarter results. Earnings per share, gross and operational margins, and revenue all increased from the prior year, above analyst estimates. It couldn't be the justification for beginning to sell. Given how cyclical the semiconductor market is, there may be worries that the scarcity that was there while the COVID outbreak was ending. If such were the case, prices would drop, hurting. Buffet might also be se

Buffett shockingly divested 86% of Berkshire Hathaway’s TSM holdings (51 million shares) after just 1 quarter😨😨😨 While it’s not unusual at all for enterprises to rebalance their investment portfolios, this move is counterintuitive to Buffett’s philosophy since he advocated for “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years”. According to a CFRA Research analyst’s calculations, Berkshire bought TSM for roughly $68.5 & sold for $74.5, so Berkshire did make a small profit on TSM. CNN attempted to contact Berkshire, but it did not immediately respond to a request for comment, & Taiwan Semiconductor did not issue any statement regarding Berkshire’s exiting of TSM stock. Of course no one would really know why Buffett sold TSM but there’s 2

There are several possible reasons why Buffett may have chosen to sell part of his TSMC stake. One factor could be that the company's stock had performed exceptionally well, and selling a portion of the stake could be a way to lock in profits. Additionally, Berkshire Hathaway may have needed cash to fund other investments or to navigate the uncertainty caused by the COVID-19 pandemic. It's also worth noting that while Berkshire Hathaway sold a portion of its TSMC stake, it still holds a significant investment in the company. As of the end of 2020, TSMC was still one of Berkshire Hathaway's largest equity investments.

In 2020, it was reported that Berkshire Hathaway had sold its entire stake in the Taiwan Semiconductor Manufacturing Company (TSMC), one of the world's largest semiconductor manufacturers. The reason for this decision was not explicitly stated by Buffett or his company, but there are several possible explanations for why he may have made this move. One possible reason is that Buffett may have been concerned about the impact of the ongoing trade tensions between the United States and China on TSMC's business. TSMC is based in Taiwan, but it has significant operations in mainland China and depends on Chinese demand for its products. If the trade tensions escalated and led to reduced demand for TSMC's products, this could have a negative impact on the company's stock price and earnings. Ano

It surprised the investment world when Berkshire Hathaway announced a $4.1bn investment in TSMC in 2022. Buffett rarely ventures out of the US and even if he did, the stake isn't huge typically. So it seems unusual when TSMC was one of the top holdings in Berkshire's portfolio. That said, it is not difficult to guess why TSMC is a Buffett stock. TSMC is a clear leader in semiconductor manufacturing and currently cornered more than 50% market share in the world. The technology know-how to make the world's most advanced chips and the ability to produce at scale are the competitive advantages of TSMC. If so, why did Berkshire Hathaway sell majority of its TSMC stake in less than six months? He didn't explain and didn't need to, so we can only speculate why he did it. Berkshire bought TSMC sh

Buffett cut $Taiwan Semiconductor Manufacturing(TSM)$ TSMC. US does not mean that he is not optimistic about the entire semiconductor industry. Buffett is a very cautious investor and he is not dissatisfied with all semiconductor companies. On the contrary, he may be a concern about some of TSMC's status quo or a future development, so he decided to cut the stock. Therefore, we should not regard Buffett's cut TSMC as a denial of the entire semiconductor industry.  Second, the semiconductor industry is still a potential industry. With the continuous development of technology, people's demand for electronic products is also increasing. For example, with the development of smartphones, smart homes and autonomous dri

Is it bad news for this company?  Kong(CNN)Shares in Taiwan Semiconductor Manufacturing Company fell as much as 4% on Wednesday, after Warren Buffett's Berkshire Hathaway disclosed that it had sold most of its holdings in the chip giant. In a Tuesday filing with the United States' Securities and Exchange Commission, Berkshire Hathaway (BRKA) said it had about 8.3 million American depository shares of TSMC (TSM) worth $618 million, having sold 86% of its shares. Just months before, in November, the company held about 60 million American depository shares of TSMC worth $4.1 billion, according to an SEC filing.

It is surprising that Berkshire cut its holding so much in just a quarter, which differs from its past practice of long-term investment and continuing to add shares. While the stock will likely suffer near term on news of Buffett’s selldown, TSMC’s longer term outlook is still positive. Many global investors continue adding its shares with its fundamentals improving, including better utilization rates and its leadership role in advanced technology. @Tiger_chat