Warren Buffett Bet $4.1 Billion on This Beaten-Down Tech Stock. Should You Follow Him?
If you want to invest like the pros, I've got some good news for you: Every three months, institutional investors need to disclose their trading activity. This includes Warren Buffett and the holding company he's managed since the 1960s, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B).
In its latest disclosure, we learned that Berkshire Hathaway bought more than $4.1 billion worth of Taiwan Semiconductor Manufacturing (NYSE: TSM) shares in the third quarter. This is more than a little surprising because Berkshire doesn't have a history of acquiring chipmaker stocks. Moreover, the industry as a whole has been reporting relatively weak demand from electronic device manufacturers.
Why do Buffett and Berkshire find TSMC stock especially attractive during what appears to be a rotten time for its industry? Here's what everyday investors who want to emulate Buffett's success need to understand.
Source Fool.com
