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Does Warren Buffet know about an imminent Chinese invasion of Taiwan
Berkshire Hathaway bought a $5 billion position in TSMC, and then quickly exited that position in a matter of months. Buffet said he doesn’t like the location and he has reevaluated that?
Buffet said that TSMC is one of the best managed companies in the world. There is no one in their league.
TSMC is opening facilities in the USA. However, facilities in the US will only be capable of producing a fraction of the silicon that Taiwan does. It’s unlikely any offshore facilities will ever replace the sheer size of TSMC’s Taiwan operations.
The market capitalization of TSMC is over $400 billion. It provides a strong incentive for the West to defend Taiwan.
Apple is almost entirely dependent on TSMC.
While Taiwan considers itself an independent nation, the Chinese government views it as a territory of China.
China rehearsed a blockade of Taiwan in August of 2022.
So the question is why Buffet reevaluated the threat of a Chinese invasion of Taiwan. Perhaps, he got a tip from someone. So what does he know, that you and I don’t know?
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