Some people think that if China invades Taiwan, only TSMC stock will go to zero. They forget that if TSMC goes down, the world economy will go down with it, especially Apple, Nvidia, AMD, Intel, etc.(the companies that rely heavily on TSMC's leading chips). Doesn't Berkshire Hathaway own a big chunk of Apple? US, including Pentagon, Energy Dept. etc., will also be greatly affected because TSMC provides the advanced chips for the weapon systems and supercomputers.
If TSMC goes away, the tech industry will be disrupted for sure, most advanced chip shipments will be delayed, but the world will move on. It certainly won't be the end of the world.
But what about the plant that they are forcing upon TSMC to fund in Arizona? It won’t be anle to make chips for newer models of phones and pc’s. And they will be super expensive
The Taiwanese need their culture preserved. Their semi-conductor industry is leading amongst competitors. America can gain the advantage with this trade agreement.
He answers in about 5 seconds with "reevaluated our position". Basically he changed his mind after consideration of the location of the business and geo-political risk. Charlie also said in the past he doesn't like businesses that require large capital expenditures and TSMC definitely is a business that continually requires high amounts of capital expenditures.
The question was the risk was the same when you bought it what changed? Saying we re-evaluated is a non answer and doesn't answer the question about why in this instance he deviated from his longstanding reputation for longterm investing. An honest answer would have been " because we bought it we essentially manipulated it by sending a signal it was a good longterm investment to the market causing it to bounce HARD and faster than we expected so we decided to take a quick lucky profit and put our money elsewhere that we deem less risky"
That's exactly why China wants Taiwan. It's too successful that even Warren Buffet wants to hold TSMC shares. Just imagine how much investment will flow in Taiwan were it not for PRC's coercion to isolate Taiwan. It will be at least another Singapore or Hong Kong but multiple times the size.
During World War II, the United States defeated Japan and temporarily handed Taiwan over to the Kuomintang, but it did not establish Taiwan's international status. Why doesn't the United States take over Taiwan now? As long as the United States claims that Taiwan is part of the United States, China will not dare to attack Taiwan, and TSMC will become an important source of tax revenue for the United States.
@@AZ-zk6frTaiwan like Hong Kong is an independent country. The same way Hong Kong does not want to be 100% UK , Taiwan I doubt wants to be 100% US. They want to stay the same as they are now, independent mini-country like bodies, like Singapore. I live in HOng kong so speaking from personal ground experience here. But if they had no choice due to war, I would agree with you they would choose to join US but probably hate to pay that crazy tax lol
If you want to invest into the chip companies then do you really have any other choices at this point? TSMC isnt even one of the best they are the best out there lol
Although they didn't say it here, Buffett and Munger have said in the past that they don't like businesses like TSMC due to it's need to invest lots of capital whether they are doing well or not. When competitors like Samsung and Intel inevitably 'catch up' and give them a run for their money, having a business that continually needs to invest large amounts of capital can become a liability. I guess investing is about reducing risk and taking calculated, reasonable risks with high chances of getting more than you paid for. As they always say, rule #1 in investing is don't lose money. Second rule is to read rule #1. With the high capex and the geo-political tensions, and possibly other risks they were unsure of, it made sense to them to get out of TSMC I suppose. Buffett can always be heard saying 'he knows where company X will be in 5 or 10 years'. He just said it of Apple in this very meeting, and says the same of Coca Cola. Those must be the companies he prefers. TL;DR, Warren changed his mind on TSMC after consideration (and made a nice quick profit too, which was lucky).
" When competitors like Samsung and Intel inevitably 'catch up' " In the past 40 years in semiconductor history, who fell behind then catch up again? None.
From what I've heard, manufacturing chips on the level TSMC does is one step below figuring out world peace and prosperity for all. In fact it's so difficult that U S government has pitched in 56 billion dollars to help establish one in the states. Again from what I hear that isn't close to enough to replicate what they are doing in Taiwan. Also let's not forget Buffet is politically connected in a way we are not. He has inside information and that is why he dumped it. He's saving his money for something he knows is coming but we haven't heard of yet. You don't sit on billions of dollars with 9% inflation and a depressed market for nothing. The Chinese will take over Twain but not until the U.S microchip manufacturing gets rolling state side or we go to war. China doesn't want that war and neither does the U.S. Wait a minute 🤔 the U.S has never seen a war they didn't like but maybe this could be the first.
It's true that alot of capital goes into chip manufacturing in the form of expensive chemistry and machinery but the returns are also stellar. I work in this industry as a process engineer. Basically, with a single project I manage worth 500k and completed in 3 months, they pay my whole year's salary.
Bro. They don’t even use chips. Ther best people to look for chip advice are chip users. Bro doesn’t even have a computer. They are amazing value investors but their tech and growth knowledge is so limited
I disagree. TSMC makes great chips - chip users might know how well a chip works but buffet knows how well the company operates and that's what he's interested in.
The investor bro tips. The reason buffet is leaving is because of politics and a high chance that chip manufacturing gets forced out of China. This also accounts for any bs that China might pull in response, which might limit the growth of TSMC.
Bro, you don't know wtf you are talking about, as evidenced by Berkshire;s Intelligent and practical investing performance record. They know what they are doing, and, their liquidation of this company should send a strong signal to Taiwan to aggressively and rapidly build duplicate production in safe territory. The CCP is going to take the island and this company will be destroyed in the process, causing an international economic crisis.
❤❤❤❤ China can easily sabotage these new fabs by TSMC, Intel and Samsung by taking a leaf out of USA's book and ban the use of all new chips made in the US by these companies. So if Apple and other tech companies in China cannot use these chips, these new fabs are as good as dead on arrival. 😂😂😂😂
Some people think that if China invades Taiwan, only TSMC stock will go to zero. They forget that if TSMC goes down, the world economy will go down with it, especially Apple, Nvidia, AMD, Intel, etc.(the companies that rely heavily on TSMC's leading chips). Doesn't Berkshire Hathaway own a big chunk of Apple? US, including Pentagon, Energy Dept. etc., will also be greatly affected because TSMC provides the advanced chips for the weapon systems and supercomputers.
If TSMC goes away, the tech industry will be disrupted for sure, most advanced chip shipments will be delayed, but the world will move on. It certainly won't be the end of the world.
But what about the plant that they are forcing upon TSMC to fund in Arizona? It won’t be anle to make chips for newer models of phones and pc’s. And they will be super expensive
Intel would skyrocket lol
It’s all built at TSMC. Nvidia doesn’t build anything. Neither does apple.
Not just that, even chinas own tech brands like huawei and xiaomi rely on TSMC chips
Charlie looks like a video game boss with that oversized suit lol
Lol
😂😂😂
Seems like Charlie wasn’t against keeping the investment in my opinion.
Right. I got the sense from his passive aggressive comment he wanted to keep it.
He hasn’t really answered the question of why invest in the first place if you don’t like the location?
I mean if you want to invest into the chip company then do you really have a choice? Samsung is not even close to TSMC at this point.
Taiwan Semiconductor Manufacturing IS A BEST BUY RIGHT NOW ... END OF 2023 AND INTO 2024 !
Bro was right
Great prediction!
In my opinion that takes you from a man to a mouse way to stand up for Taiwan
WR spoke for 6min and didn’t even answer the Q!
Classic
Dude he clearly answered it by mentioning the problem is the location of the company.
Stop trying to hard.
Now that we have reached the limit of Moore's law, I have a bold prediction - the size of the chip will double in size every two years.
More resources needed...
Warren seems to finally be showing his age a bit here. I wish he could live forever.
The Taiwanese need their culture preserved. Their semi-conductor industry is leading amongst competitors. America can gain the advantage with this trade agreement.
nvidia is the number one tech comopany and tsmc is the number one chip supplier.
Awesome Non-Answer.
He answers in about 5 seconds with "reevaluated our position". Basically he changed his mind after consideration of the location of the business and geo-political risk. Charlie also said in the past he doesn't like businesses that require large capital expenditures and TSMC definitely is a business that continually requires high amounts of capital expenditures.
The question was the risk was the same when you bought it what changed? Saying we re-evaluated is a non answer and doesn't answer the question about why in this instance he deviated from his longstanding reputation for longterm investing. An honest answer would have been " because we bought it we essentially manipulated it by sending a signal it was a good longterm investment to the market causing it to bounce HARD and faster than we expected so we decided to take a quick lucky profit and put our money elsewhere that we deem less risky"
Is that why nvda has higher valuation?
If we're being rational, that'd can't be why. Because Nvidia totally depends on a company based in Taiwan (TSMC) to make its chips
What do you have against Arizona
Not enough water ??
" I don't like its location. "
Ofc not but everyone understands why TSMC doesnt want to move out their best of the best FAB.
That's very scary to hear him say that.
Yea no one can beat those taiwanese
Well let’s see in 2 years WHO is WHO in the chips business
Here we are buddy
Maybe Warren got a tip? He seems to stumble and bumble
I was thinking the same thing. What does he know that we don’t. He didn’t really answer the question. I hope I’m wrong..holding smh fund.
Rip charlie what a legend
Takeaway: all biz in Taiwan are doomed bc geopolitical tension.
In a nutshell. Unfortunately : (
Well all becuz of China.
That's exactly why China wants Taiwan. It's too successful that even Warren Buffet wants to hold TSMC shares. Just imagine how much investment will flow in Taiwan were it not for PRC's coercion to isolate Taiwan. It will be at least another Singapore or Hong Kong but multiple times the size.
During World War II, the United States defeated Japan and temporarily handed Taiwan over to the Kuomintang, but it did not establish Taiwan's international status.
Why doesn't the United States take over Taiwan now? As long as the United States claims that Taiwan is part of the United States, China will not dare to attack Taiwan, and TSMC will become an important source of tax revenue for the United States.
@@AZ-zk6frTaiwan like Hong Kong is an independent country. The same way Hong Kong does not want to be 100% UK , Taiwan I doubt wants to be 100% US. They want to stay the same as they are now, independent mini-country like bodies, like Singapore. I live in HOng kong so speaking from personal ground experience here. But if they had no choice due to war, I would agree with you they would choose to join US but probably hate to pay that crazy tax lol
action really adhered to words
just say it ..china has their eye on it and its a risky investment
If you want to invest into the chip companies then do you really have any other choices at this point? TSMC isnt even one of the best they are the best out there lol
Although they didn't say it here, Buffett and Munger have said in the past that they don't like businesses like TSMC due to it's need to invest lots of capital whether they are doing well or not. When competitors like Samsung and Intel inevitably 'catch up' and give them a run for their money, having a business that continually needs to invest large amounts of capital can become a liability.
I guess investing is about reducing risk and taking calculated, reasonable risks with high chances of getting more than you paid for. As they always say, rule #1 in investing is don't lose money. Second rule is to read rule #1. With the high capex and the geo-political tensions, and possibly other risks they were unsure of, it made sense to them to get out of TSMC I suppose. Buffett can always be heard saying 'he knows where company X will be in 5 or 10 years'. He just said it of Apple in this very meeting, and says the same of Coca Cola. Those must be the companies he prefers.
TL;DR, Warren changed his mind on TSMC after consideration (and made a nice quick profit too, which was lucky).
tsmc can be replaced by Apple on a dime if shiet goes south.
@@claus1225 You have 0 clue
" When competitors like Samsung and Intel inevitably 'catch up' " In the past 40 years in semiconductor history, who fell behind then catch up again? None.
From what I've heard, manufacturing chips on the level TSMC does is one step below figuring out world peace and prosperity for all. In fact it's so difficult that U S government has pitched in 56 billion dollars to help establish one in the states. Again from what I hear that isn't close to enough to replicate what they are doing in Taiwan. Also let's not forget Buffet is politically connected in a way we are not. He has inside information and that is why he dumped it. He's saving his money for something he knows is coming but we haven't heard of yet. You don't sit on billions of dollars with 9% inflation and a depressed market for nothing. The Chinese will take over Twain but not until the U.S microchip manufacturing gets rolling state side or we go to war. China doesn't want that war and neither does the U.S. Wait a minute 🤔 the U.S has never seen a war they didn't like but maybe this could be the first.
It's true that alot of capital goes into chip manufacturing in the form of expensive chemistry and machinery but the returns are also stellar. I work in this industry as a process engineer. Basically, with a single project I manage worth 500k and completed in 3 months, they pay my whole year's salary.
Bro. They don’t even use chips. Ther best people to look for chip advice are chip users. Bro doesn’t even have a computer. They are amazing value investors but their tech and growth knowledge is so limited
I disagree. TSMC makes great chips - chip users might know how well a chip works but buffet knows how well the company operates and that's what he's interested in.
The investor bro tips. The reason buffet is leaving is because of politics and a high chance that chip manufacturing gets forced out of China. This also accounts for any bs that China might pull in response, which might limit the growth of TSMC.
Bro, you don't know wtf you are talking about, as evidenced by Berkshire;s Intelligent and practical investing performance record. They know what they are doing, and, their liquidation of this company should send a strong signal to Taiwan to aggressively and rapidly build duplicate production in safe territory. The CCP is going to take the island and this company will be destroyed in the process, causing an international economic crisis.
just like southpark bank, and its gone.... 😆
WWWWWAAAAAAAAARRRRRRRRRR !!!!!!!!!!!!!!!!!!!!
people, Warren don't know how to lie !
Margarita Centers
He is losing his mojo
Beer Inlet
Thought August would be a inflection month it's only been a deflection no reflection❤❤🎉🎉
Schoen Lake
Jaycee Junctions
Ezequiel Ville
Jarvis Parkways
America has been blocked with a Square - runs in corner s-
Can't even understand wtf he's saying
Abdullah Burgs
my chip worth haha 32 trillion welcome to Hollywood
China
damn
did his friends in high places tell him something is about to go down?
❤❤❤❤ China can easily sabotage these new fabs by TSMC, Intel and Samsung by taking a leaf out of USA's book and ban the use of all new chips made in the US by these companies. So if Apple and other tech companies in China cannot use these chips, these new fabs are as good as dead on arrival. 😂😂😂😂
Dudes yapping
Intel is investing heavy over the next few years in their fabs, and I think eventually they will give TSMC a run for their money.
Hahahahaha
地缘政治，在日本比在台湾好
AI chipped by z
soviet union tech military top secret haha catch me if you can
Cercano di spremerti quanto possono per farti andare via fatto a posta da chi anche faceva altro con buste paga comuni
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