Warren Buffett revealed in an interview with Nikkei that geopolitical tensions were a consideration in the decision to sell most of Berkshire Hathaway’s shares in Taiwan-based chip giant TSMC. The Oracle of Omaha stated that while TSMC was well-managed, Berkshire had better places to deploy its capital. In February, Berkshire Hathaway sold 86% of its shares in TSMC, just months after purchasing them for $4.1 billion.
The size of the purchase indicated that it was most likely made personally by Buffett himself rather than one of his portfolio managers. TSMC is known for supplying semiconductors to tech giants like Apple and Qualcomm, and its advanced semiconductors are crucial to the smooth running of many devices.
Warren Buffett, known as the “Oracle of Omaha,” cited geopolitical tensions as one of the reasons Berkshire Hathaway sold most of its shares in Taiwan Semiconductor Manufacturing Company (TSMC). In a recent interview with Nikkei, Buffett explained that although TSMC is well-managed, Berkshire Hathaway had “better places” to allocate its capital. Berkshire Hathaway had purchased 86% of its shares in TSMC for $4.1 billion, but sold them just months later.
TSMC is a major supplier of semiconductors to tech giants such as Apple and Qualcomm and is seen as a national treasure in Taiwan. It is also considered a crucial component of a “silicon shield” against potential military aggression by China. Tensions between Taiwan and China have risen after China conducted military exercises near the island, which it claims as its own territory.
