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Warren Buffett’s Berkshire Hathaway sells entire stake in TSMC

Warren Buffett’s conglomerate has sold its remaining shares in the world’s largest chipmaker, TSMC, after the “Oracle of Omaha” sounded alarms about its homebase of Taiwan.

In a Monday filing, Berkshire Hathaway (BRKA) disclosed that it was no longer holding a stake in Taiwan Semiconductor Manufacturing Company (TSM) as of the end of the first quarter.

In recent weeks, Buffett had repeatedly expressed concerns over the future of Taiwan, the self-governed democratic island where TSMC is based. China’s Communist leadership has long claimed Taiwan as part of its territory, despite having never ruled over it.

The move completes an exit from TSMC by one of the world’s most watched investors, which had already been winding down its stake in recent months.

In February, Berkshire revealed it had sold 86% of its shares in TSMC, which were purchased for $4.1 billion just months before. The quick sale was considered unusual because Buffett is known for making longer term bets.

Asked to explain his decision on an analyst call this month, the billionaire said: “I don’t like its location, and I’ve reevaluated that.”

“I feel better about the capital that we’ve got deployed in Japan than in Taiwan,” the Berkshire Hathaway chairman added. “I wish it weren’t sold, but I think that’s a reality.”

Despite the share sale, Buffett lauded TSMC as “one of the best-managed companies and [most] important companies in the world.”

“There’s no one in the chip industry that’s in their league, at least in my view,” he said.

“Marvelous people and marvelous competitive position and everything, [but] I’d rather find it in the United States.”

Buffett said his reassessment of the company was in “light of certain things that were going on.” He had previously pointed to geopolitical tensions as a concern.

TSMC declined to comment Tuesday on Berkshire Hathaway’s divestment.

https://amp.cnn.com/cnn/2023/05/16/investing/berkshire-hathaway-taiwan-tsmc-stock-exit-hnk-intl/index.html

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