Buffett dumps TSMC shares

erek

erek

[H]F Junkie
Joined
Dec 19, 2005
Messages
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A sign of the times

"Berkshire Hathaway disclosed in February that it sold 86% of its shares in TSMC near the end of 2022, according to Nikkei. The quick turnaround broke away from the 92-year old investment tycoon’s usual strategy of making longer-term bets.

China staged its largest ever war games after Pelosi touched down in Taipei on 2 August, roundly denouncing the visit as violating its sovereignty.

Beijing views Taiwan, which has operated under an independent, democratic government for decades, as a breakaway province and pledged “reunification” by force if necessary. US intelligence assesses China will move on Taiwan within the coming decade, although if the Taiwanese are backed by the US the Chinese are unlikely to win and there will be huge casualties on both sides."

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Source: https://fudzilla.com/news/56708-buffet-dumps-tsmc-shares
 
erek said:
A sign of the times

"Berkshire Hathaway disclosed in February that it sold 86% of its shares in TSMC near the end of 2022, according to Nikkei. The quick turnaround broke away from the 92-year old investment tycoon’s usual strategy of making longer-term bets.

China staged its largest ever war games after Pelosi touched down in Taipei on 2 August, roundly denouncing the visit as violating its sovereignty.

Beijing views Taiwan, which has operated under an independent, democratic government for decades, as a breakaway province and pledged “reunification” by force if necessary. US intelligence assesses China will move on Taiwan within the coming decade, although if the Taiwanese are backed by the US the Chinese are unlikely to win and there will be huge casualties on both sides."

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Source: https://fudzilla.com/news/56708-buffet-dumps-tsmc-shares
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The world would descend down on China with great fury if they even tried to invade Taiwan.
 
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Lakados said:
Their US facilities would be fine…
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Exactly. I'm sure the Taiwan TSMC FABs are in the US top 10 strike list should China do the stupid. TSMC will be hurt but the IP and some of the FABs will remain, the beauty of world wide operations.
 
Lakados said:
Their US facilities would be fine…
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Fab 11 is not state of the art and their Phoenix Fab won't be online before 2024 at the earliest. The immense loss of IP and knowledge base from the loss of their Taiwanese Fabs would render those plants useless. As a company, TSMC would cease to exist as anything repreenting a cutting edege foundry. They would be more like Global Foundries. The world would suffer a lot form that.
 
I believe China would be making a mistake to attempt to claim Taiwan.
Hong Kong on the other hand, well, as an American I do appreciate it being more of a free market area, but it is still connected directly to mainland China, and thus, it is a ripe target to want to control and it would be hard for me to truly have a strong reason why Hong Kong shouldn't be fully Chinese, unless the people of Hong Kong desperately wish to secede, to the point of going the distance and properly disabling their government there, and permanently demanding control via guerilla action against all government targets.
However, Taiwan is a separate island. China has no direct connection there, and should stay out. I would vote to support a war against China if they attempted to take Taiwan. TSMC is a valuable asset to you and to me, and we all know it. That alone is one reason to defend Taiwan, but there are certainly many more reasons, which belong in a more specialized political forum.

But in the end, I think China and the USA should strive for friendship. I have no ill-will towards the Chinese. I simply want peace between our nations, with no great bloodshed or turmoil.
 
China doesn't have a blue water navy, we would own china so easily. The US spends more on military and development then all other countries in the world combined.

The one thing that the US is better at then any other country in the world is WAR.

Hell Japan would give china a run for their money.
 
mullet said:
China doesn't have a blue water navy, we would own china so easily. The US spends more on military and development then all other countries in the world combined.

The one thing that the US is better at then any other country in the world is WAR.

Hell Japan would give china a run for their money.
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The US' generals themselves, though they believe they would win, believe it would be at incredibly high cost. The US' ships are aging. China's military spending is going up. And the quantity of ships that China has are increasing.



As this video also shows, just the proximity of Taiwan to China gives China immense control over its outcome. If you have 30 minutes (or less if you watch say at 1.5x), it's pretty informative about this exact subject.
 
Let them have it just invest in Intel for future manufacturing it's American and Israeli let's be real who's not going away here when talking about China and Taiwan....
 
staknhalo said:
Let them have it just invest in Intel for future manufacturing it's American and Israeli let's be real who's not going away here when talking about China and Taiwan....
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Strategic manufacturing aside, there is value in not allowing tyrants to do whatever they want to do on the world stage.

Part of the point in Buffet pulling out is recognizing that it's perhaps a shaky investment when it comes to getting destroyed by a super power. However that doesn't mean that Taiwan isn't worth preserving. As the video I showed also talks about, China's interest goes beyond just wanting Taiwan, they want a bunch of islands, they want to control all traffic and resources around their country to the detriment of everyone else, referring to international waters.

They are definitely a national security concern for everyone in the region. Japan, the Philipines, and Australia (just as a few examples) are all very concerned to say the least about what both China and North Korea are doing. And Taiwan definitely is a concern for all of them as well.
 
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