Warren Buffett dumps Berkshire Hathaway’s entire stake in TSMC

Berkshire Hathaway has disclosed that they have sold their complete remaining share in the biggest chipmaker globally, Taiwan Semiconductor Manufacturing Company (TSM). Warren Buffett was recently ranked No. 9 in a list of the world’s best CEOs for 2023; meanwhile, Berkshire Hathaway ranked No. 11 in the CEOWORLD magazine’s ranking of the most influential companies in the world.

In the previous quarter, Berkshire Hathaway (BRKA) disclosed that it had bought 60 million American depository receipts in TSMC, valued at around $4.1 billion. Back in February, it was disclosed by Berkshire Hathaway that they had sold 86% of their shares in TSMC. It was quite uncommon for Buffett to make a quick sale since he’s renowned for making long-term investments.

In recent weeks, Warren Buffett has repeatedly expressed concerns over the future of Taiwan. He mentioned that he had reconsidered the situation and came to the conclusion that he was not fond of it. In an interview with Nikkei Asia in April, Buffett admitted that geopolitical tensions were “a consideration” in selling the shares in TSMC.

“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 Taiwan Semiconductor Manufacturing Company (TSM) 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.”

During an analyst call this month, the billionaire was asked to elaborate on his decision. He responded by stating that he had reevaluated the location and determined that he did not like it.

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