Geopolitical tensions contributed to Berkshire Hathaway's mass selloff of Taiwan's TSMC

地緣政治緊張局勢導致波克夏·海瑟威公司大規模拋售台灣台積電

Warren Buffet to increase holdings in Japan


TAIPEI (Taiwan News) — Geopolitical tensions played a role in Warren Buffett’s decision to slash holdings in Taiwan Semiconductor Manufacturing Co. (TSMC) by 86.2%, only three months after making a US$4.1 billion (US$124 billion) investment in the company.

The news comes as TSMC failed to meet sales estimates for the second consecutive quarter as global electronics demand remains low. The largest company in Taiwan reported sales were down 15% last month relative to the prior year, at NT$145.4 billion (US$4.76 billion), per Bloomberg.

The large-scale divestment in TSMC by Buffett’s holding company Berkshire Hathaway occurred in February, and was seen as an uncharacteristic move from the investor who has established a reputation for long term investment. Nikkei Asia reported on Tuesday (April 11) that Buffett said geopolitical tensions were a “consideration” when deciding to sell off TSMC stock.

Buffett reportedly said TSMC was a “well managed company,” but that Berkshire Hathaway has better places to invest elsewhere. Buffett told Nikkei that he intends to increase investment in Japan, leading to share price increases in five Japanese trading companies.

Following Berkshire Hathaway’s decision to sell off TSMC stock, the company’s shares fell 6%. The Buffett share dump followed Tiger Global Management, GQG Partners and Capital Group, BlackRock Inc, as well as JPMorgan & Chase, who all made significant reductions in their TSMC holdings in February.

On April 11, Bloomberg reported that TSMC stocks were up about 18% in 2023, despite the company failing to meet sales targets.