Why Taiwan Semiconductor Stock Is Down Today
Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has dumped much of its stake in Taiwan Semiconductor Manufacturing (NYSE: TSM), just months after buying into the chipmaker. Investors are following the Oracle of Omaha's lead, sending shares of Taiwan Semi down as much as 6.1% on Wednesday morning.
Taiwan Semiconductor is responsible for a significant portion of global chip demand, an enviable position to be in given the push to make appliances, vehicles, and all sorts of other devices "smart." But the semiconductor industry is also famously cyclical, and the stocks traded off last year on concerns about a global recession.
Berkshire Hathaway bought in during the downturn, disclosing in November it had bought about $4.1 billion worth of Taiwan Semi during the third quarter. It seemed at the time to be straight out of CEO Warren Buffett's playbook: buying when the stock is down but the long-term opportunity remains intact.
Source Fool.com
