Berkshire Hathaway, a subsidiary of Warren Buffett, announced the details of its holdings in the fourth quarter of last year. It was shocking to see that TSMC’s American Depositary Receipts (ADR) fell by 86%. 525 yuan, the market value fell below the NT$14 trillion threshold; Taiwan stocks were affected, breaking through 15,400 points in the intraday session, and finally fell 221 points to close at 15,432 points.
According to the analysis of Buffett’s investment trajectory, Zhu Chengzhi, vice chairman of the China Trust and Investment Advisory Association and chairman of Wanbao Investment Consulting, Buffett prefers value investment and only invests in companies with factories in the United States. Buffett bought TSMC ADR in the third quarter of last year. The key point is that Pelosi, Speaker of the U.S. House of Representatives, visited Taiwan in early August, which was in line with the investment philosophy of “good companies encounter bad luck”. It was cut at the same time, and the stock price even reached the price of 370 yuan.
Buffett rarely “speculates in the short term”, the investment market was greatly surprised, and it also sparked heated discussions among netizens; Zhu Chengzhi analyzed that in the fourth quarter of last year, semiconductor inventories were large, and the fundamentals were downward. In addition, after holding TSMC, he may find that the economy has declined and investment has not. As imagined, Buffett simply took profits first.
Semiconductor analyst Lu Xingzhi also lamented that “Buffett’s premium will be over in one quarter.” This kind of short-term speculation is really not like Buffett’s style of holding value stocks for 10 years in the past. It is estimated that it is the decision of professional managers.
Not only Buffett slashed TSMC’s ADRs, from 60 million shares to 8.29 million shares, the well-known investment company Tiger Global Fund was even more ruthless. In the fourth quarter of last year, it directly liquidated TSMC’s ADRs. The New York State Pension Fund also followed up and reduced its holdings of TSMC’s ADRs by more than 420,000 share.
Zhu Chengzhi believes that Buffett’s move to sell TSMC also heralds that the protagonists of the Year of the Rabbit in Taiwan stocks will be replaced. Small and medium-sized stocks may play the role of small rabbits, such as server-related groups, which have more opportunities to perform this year.
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