Buffett says geopolitics a consider Berkshire sale of TSMC stake
(Reuters) – Warren Buffett referred to as geopolitical tensions “a consideration” in Berkshire Hathaway Inc’s determination to promote most of its stake in Taiwanese chipmaker TSMC just some months after shopping for it, Nikkei reported on Tuesday.
Berkshire had purchased greater than $4.1 billion of Taiwan Semiconductor Manufacturing Co’s shares between July and September 2022, however in February stated it had offered 86% of its stake by year-end.
The dimensions of the funding instructed that Buffett, moderately than one in every of his Berkshire portfolio managers, had purchased the shares for Berkshire, and the sale was surprising given the billionaire’s choice to take a position for the long-term.
In an interview with Nikkei, Buffett described TSMC as a well-managed firm, however stated Berkshire had higher locations to deploy capital.
Buffett was in Japan to satisfy with 5 Japanese buying and selling homes during which Berkshire invests.
China claims Taiwan as its personal, a declare Taiwan rejects. Tensions over the democratically ruled island have been rising, significantly when Taiwan President Tsai Ing-wen met with U.S. Home of Representatives Speaker Kevin McCarthy final week.
Berkshire owns a number of dozen companies together with the BNSF railroad and Geico automotive insurance coverage. It additionally invests in dozens of shares, together with iPhone maker Apple Inc, which Buffett views extra as a client firm than a know-how firm.
(Reporting by Jonathan Stempel in New York; enhancing by Jonathan Oatis)
