Warren Buffett Just Dumped His Taiwan Semiconductor Position -- Should You Follow?
Berkshire Hathaway (NYSE: BRK.B) is headed by legendary investor Warren Buffett, who has an enormous following. As a result of his success, many investors follow his trades as soon as they are available when Berkshire Hathaway files its quarterly Form 13F, which reveals what moves the company has been making.
One noticeable change in its latest filing was Berkshire's 86% reduction in its Taiwan Semiconductor (NYSE: TSM) stake. So with Berkshire Hathaway selling, should you follow suit and liquidate your position? Let's find out.
The chip industry is notoriously cyclical, and Taiwan Semiconductor (commonly abbreviated as TSMC) is a vital part of this field. Its semiconductor foundries produce some of the top chips in the world, including cutting-edge 3 nm (nanometer) chips. However, when demand for consumer electrics falls, Taiwan Semiconductor gets whacked.
Source Fool.com
