Why Buffett's Buying
Over 90% of the most advanced chips in the world are made by TSMC.
In my opinion, the Chinese-American dispute over Taiwan is actually a battle over TSMC.
Yes, the world's most powerful countries are willing to start a war over this firm because it is so important for our modern way of life.
In Q3, 2022, Warren Buffett's Berkshire Hathaway invested nearly $4 billion in TSMC.
Taiwan Semiconductor's acquisition by Buffett may be a hedge, and it has major implications for Apple, Berkshire, and index investors.
The $40 billion investment that TSMC made in Arizona is one glaring problem; suffice it to say that this may displease investors.
Despite this, I project 12% annual long-term returns for TSMC.
I believe Buffett's Berkshire Hathaway made a wise purchase with this (BRK.B). I expect 12% annual returns for TSMC over the next ten years.