Warren Buffett significantly reduced his position in TSMC
Recently, Mr. Buffett’s financial firm Berkshire Hathaway submitted a new document called “Form 13F” to the US Securities and Exchange Commission (SEC). It shows increased holdings of American building materials company Louisiana-Pacific Corporation, media and entertainment company Paramount Global and Apple while reducing holdings of TSMC, U.S. Bank, Bank of New York Mellon, Activision Blizzard, Chevron, and other companies stock.
According to Wccftech reports, Berkshire Hathaway reduced its holdings of 51.768 million shares of TSMC in the fourth quarter of last year, a reduction of 86%, and the market value of its holdings also fell from $4.1 billion to $618 million, directly falling out of its top ten holdings. Among the stocks that Berkshire Hathaway reduced its holdings in the fourth quarter of last year, five of them had reduced their holdings by double digits, and TSMC was the stock with the second largest reduction in its holdings.
Last year, Berkshire Hathaway’s position in TSMC once made the headlines, but after only one quarter, it significantly reduced its holdings of TSMC’s stock, which seems to be contrary to its past long-term investment and continuous increase in investment strategy. According to calculations, Berkshire Hathaway bought TSMC shares at about $68.50 per share and sold them at $74.50 per share.
In November last year, TSMC’s share price in the US stock market had hit a low in nearly two years, but it has risen fiercely since 2023, closing at $97.96 per share on February 14. From this perspective, Berkshire Hathaway seems to have sold a little early.
Due to weak market demand and high industry inventory levels, many analysts and institutions are not optimistic about TSMC’s performance in the first quarter of this year, and this trend will continue until the second half of this year before it is expected to improve.
