This Stock Is Down 42%. Buffett Just Bought $4 Billion of It

By Jason Hall and Jeff Santoro – Nov 20, 2022 at 5:05AM

NYSE: TSM

Taiwan Semiconductor Manufacturing

Market Cap

$745B

Today's Change

(1.76%) $2.49

Current Price

$143.60

Price as of May 8, 2024, 4:00 p.m. ET

Warren Buffett takes Berkshire's stock portfolio even deeper into tech.

Berkshire Hathaway (BRK.A 0.14%) (BRK.B 0.06%) CEO and legendary investor Warren Buffett (or one of his lieutenants) added 60 million shares of Taiwan Semiconductor (TSM 1.76%) to the Berkshire portfolio, according to a recent SEC filing. With shares down more than 40% from the high, the dividend cut in half from the 2019 peak, and weakening demand for chips, was this a bad move? Motley Fool contributors Jason Hall and Jeff Santoro break down why Taiwan Semi looks really compelling at recent prices.

*Stock prices used were the after-hours prices of Nov. 16, 2022. The video was published on Nov. 20, 2022.

Jason Hall has positions in Taiwan Semiconductor Manufacturing. Jeff Santoro has positions in Apple and Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Jason Hall is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.