Why Buffett Bought TSMC

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[@Asianometry]

My thanks to Private Internet Access for their support of the channel. Sign up using my personalized link here and get 83% off + 4 months free: piavpn.com/Asianometry

[@mckengineer5727]

Berkshire is an English word, pronounced Barkshire by those who speak English in England FYI 😂. I love your analysis and as you’re not American, maybe you can humour an old British arse with your pronunciation 😂

[@ChuckNorris-lf6vo]

Bro do not call yourself a youtuber it undermines the facts that you bring. Also do not say stupid sh!t like "personal financial style" there is not shut thing. Either bring the facts or make sh!t opinion statements incoherent with the English language and the logic of the universe. One of the best youtubers bust transcend the sh!t. Thanks.

[@rok1475]

@@mckengineer5727 do you speak any language other than English?

[@laqueenawilliams4762]

Why did you do a clickbait?!?

[@kimmogensen4888]

Good investment, the stock was lower than expected, the US chip law makes some of the fall justified, but the CCP China invasion treat is lower than a year ago, Taiwan is harder than most places to invade, geographic, typhoons, storms, Taiwan straits currents, only to months where invasion is realistic, and Russia showing the world that it’s hard to invade and USSR weapons and corruption doesn’t make a military powerful.

[@Starstreak170]

This didn't age well, he dumped most of the shares.

[@geneballay9590]

Another lucid and timely presentation (as usual). Thank you for all the work and for sharing.

[@bitcoinzoomer9994]

Probably has to do with the fact they have a virtual monopoly on the modern world's most vital product, just saying

[@johnl.7754]

Heard Samsung was pretty close

[@aravindpallippara1577]

They aren't a monopoly yet, samsung and intel are very close behind both in technology and market share, not to mention the many smaller players like global foundries

[@davidjoelsson4929]

they are not a virtual monoply, TSMC wouldnt even exist without ASML which are a real virtual monoply on world most vital product

[@PainterVierax]

@@davidjoelsson4929 and on lab researches and niche products made by IBM and many others who are not founded by those type of financial sharks seeking for short-term profit.

[@illiiilli24601]

@@aravindpallippara1577 global foundries hasn't tried to invest in cutting edge nodes since 14nm IIRC

[@mrlucasftw42]

The reason that he can't do any cigar butt strategy anymore is that his company is so large. By the very definition of a downtrodden firm, it would be so small as to not be meaningful to Buffett's huge balance sheet. He basically can only work with billion / trillion dollar firms as investments because all the small fries on the market wouldn't be meaningful to the whole return, even if their individual return was very good. Edit: Typed this before watching whole video - glad to see it covered.

[@JohnMaxGriffin]

There also just aren’t many cigars butt companies. When that type of investing was invented, public companies were ludicrously undervalued.

[@revaddict]

There is also the fact that the amounts he can invest are so big that they can very easily move stocks of tiny companies ridiculous amounts.. High frequency trading algo's will definitely catch consistent buying and raise the stock price comical amounts.. There is also the problem of taxes.. Let's say they made a decent return on their investment but don't see the company going anywhere in the future, them selling out will require paying of taxes on those gains.. Ideally they want to sit on unrealized gains and hopefully one that pays dividends.. Apple fits the bill perfectly..

[@angelov_x]

Bro i love ur videos

[@AllocatorsAsia]

Yew! appreciate the plug mate! I need to get my bum into gear and get my Buffett's Bet on Apple video together. Monday morning fingers crossed!

[@Tential1]

I love your work man. Truly amazing stuff. Inspiring.

[@kethanraman944]

Fantastic video man. I would really like to see you make more Finance related videos. Thanks a lot

[@dark_mode]

Buffett didn't buy TSMC, He purchased shares of TSMC.

[@benjammin9745]

Tis a bit clickbaity

[@Tential1]

Hm, I feel like he expects the people who watch this type of content to understand that? But yes, if you want to be technical.

[@wraith8323]

I agree with Dark mode, Berkshire purchases a stake in TSMC would make sense. Berkshire holds a sizeable position in Coca Cola, now if the title was 'Buffett sells Coca Cola' it would seem like he was selling the whole company

[@gilligan87]

But that's exactly how anyone who regularly talks about buying shares would phrase it No reasonable person would believe that Warren Buffett would personally purchase TSMC. Any reasonable person would assume that this means Berkshire Hathaway is buying TSMC stock. The title makes sense: the asianometry audience is likely comprised of people who are tech and finance literate, so there's no real need for him to cater to the lowest common denominator.

[@nfineon]

Yeah misleading title, this wasn't an Elon musk style transfer of ownership or anything just an investment. Had to downvote for the clickbaity title, don't stoop that low.

[@akarpo]

Hey! Would be great to get a video on wafer pricing. I know pricing is typically a commercial secret, but I think a few Twitter anons along with some open source intelligence would could put something together. Specifically, I'm interested what Apple is paying for N4 vs what Nvidia is paying for N4 (and what AMD is paying for N5). Also, how things are shaping up for N3E - whether we'll get an Apple product next year that uses it (the AR/VR headset? Seems like the Macbook Pro M2 launch won't fit into the N3E timeline, but the AR/VR headset is low volume/could launch 2H2023). Seems like N3E won't be in volume for everyone else (other than Apple) until 2H2024 / 1H2025.

[@ckhalifa_]

Wafer is $16k and is projected to increase to $20k with 3nm technology

[@vigilant_1934]

N4 would be 4nm. Apple and Nvidia are on the specialized 5nm process 4N. N comes before the numbered nm process so N5 and N7 for example are 5nm and 7nm respectively. 4N is just an enhanced slightly shrunken 5nm so it doesn't cost too much more than the regular N5 as it's not a completely new node.

[@craigslist6988]

Yes yes.. I know some of these words.

[@paulmichaelfreedman8334]

This channel is an information treasure. Thank you. You provide details about subjects that cannot be found anywhere else.

[@ishunyu]

Happy you got that sponsorship!!! 💰💰💰

[@kevinquinn7645]

This could also be a vertical integration play. Given Berkshire is heavily invested in Apple, also taking a position in one of its key component suppliers simply reinforces that position.

[@wojciechwasik49]

By that logic Berkshire will go after ASML next.

[@pruthuchauhan2159]

Great Video , keep up the good work. "Buffet Invests in TSMC" would be more appropriate. He has not bought TSMC or a controlling stake in it.

[@Longtack55]

Semantics. He is an "owner" - as am I.

[@successfullguy]

I really appreciate your simple too the point videos with lots of supporting evidence.

[@willberry6434]

TSMC is comically undervalued.

[@frederikskau5964]

True, unless China invades, which is an existential threat to the company

[@evilumski2]

This isn't true, samsung in its nature would beat them if it would be economically beneficial to them

[@willberry6434]

@@evilumski2 you say that like they haven't been trying. Clearly you dont know how bad samsung foundry has been shitting the bed lately. Losing customers like nvidia, qualcomm and others because their yields are so shit and management was lying to cover it up.

[@willberry6434]

@@frederikskau5964 This narrative is so dumb and I am tired of hearing it. If Taiwan is invaded it takes out all of the worlds high tech semis for years and tanks the entire world stock market regardless. Pretending like you can avoid that risk by just avoiding owning the stock is retarded as shit. Maybe TSMC goes to zero but will that really matter when APPLE crashes 90% by way losing its sole supplier and biggest growth market along with every other global corps stock. And at worst Taiwan getting invaded is literally WW3 in which case why are you caring about your stock portfolio anyways!!! Like trying to build a meteor strike into your investment thesis. Anyone who talks about Taiwan invasion risk as a reason for not investing in TSMC hasn't thought through what the ramifications of the invasion would really be, in which the effect of losing your TSMC position would be the LEAST of your worries LOL

[@mrgreenbean5933]

I thought everyone was smoking crack when they say this, but my god, 2T in revenue and 900B gross profit??? Holy shit

[@stevengill1736]

Thanks for the news - I'm in awe of TSMC so anything involving them is ovf interest.

[@Longtack55]

Thank goodness for an articulate, calm and well-researched presentation. I commend you for not assuming we all want babbling showmen.

[@raylopez99]

@3:49 the "Buffett's alpha" journal article by Frazzini et al. of 2018 shows that the float from insurance companies by Buffett gives him gentle leverage, which is found to be about 1.6x.

[@leflavius_nl5370]

As Mr Krabs would say... "Money"

[@x2ul725]

It always shocks me how chill TSM is during earnings calls about the world around them. Go TSM !!

[@Extys]

If China isn't entirely full of shit, then TSM's days are numbered...

[@reptiloidtill]

The league team?

[@aymane.bencheikh]

@@reptiloidtill lol

[@aluisious]

What are they supposed to do, cry on the phone about the Chinese army? Que sera, sera.

[@Martinit0]

The purpose of earnings calls is to calm down your investors ;-)

[@CarthagoMike]

On the short term, this is a great sign for TSMC. The long term however, is less certain. But we shall see.

[@alexandruraresdatcu]

That depends on what china decides to do, they want TSMC for free.

[@sinoleao]

@@alexandruraresdatcu lol, how irony is now US is robbing TSMC to avoid being possibly possessed by PRC in future.

[@seogabonotjah6555]

agreed quite risk for mid-long term but again let see what happen in future

[@sadiporter2966]

The long term is very unpredictable. One of the reasons is china and russia are creating their own x-ray lithography machines which are better than EUV and much cheaper too. It is possible that SMIC could become a huge company especially with these x-ray lithography machines in which case TSMC will be under threat.

[@mikoajkusiak3643]

@@sadiporter2966 do you have links to any articles about China and Russia developing this x-ray technolog? It seems interesting and I never heard about that. Thanks in advance!

[@probablyaman]

I really love the conclusion you made in the end. So many finance people give advice saying you should invest in something if some rich guy is doing the same. Heck, even Buffet himself said a regular person should just invest in the S&P500 instead of individual stocks if someone is thinking about investing. The sad truth about investing is that capital is king. And so many small investors are being sold this false dream that they will get 500% returns if they do it 'correctly'. Guess what? 500% return of $1000 is only $5000, and the risk of losing all the profit is probably higher as well. Whereas if you have billions all you need is a few percetage of increase to have millions in profits.

[@jmiquelmb]

There's also insider information. I'm pretty sure Berkshire knows from higher ups in the US gov what is the geopolitical strategy they're probably going to follow in the coming years. If the US is going to support Taiwan rather than focus on national industry independence, TSMC is a far safer investment. This is something that an average investor could never know, since they don't have insider info.

[@Longtack55]

@@jmiquelmb It's no secret that a Democrat government will back Taiwan. Not so sure about the Repubs and their isolationist attitudes.

[@user-mx4oq5ww5b]

@@jmiquelmb good point

[@LaurentiusTriarius]

You can do 500% often, on very small transactions, the only way to get to these levels is to scale the values & frequency of these transactions, so yeah more capital. You can't get around it.

[@antoniocampos1151]

​@@jmiquelmb it is a risky bet on the mid/ long term. For now, Biden administration is commited to not let Tawain fall, however we have elections in 2024 and there is a chance Biden won't be reelected (not even sure if he will be candidate). New administration might take a softer tone with China. I've been keeping an eye on TSMC for a while now, but I can't think of them as a safe long term investment due to the geo political situation. With an ever increasingly agressive China you never know.

[@milan1969]

Continue the great work Asianometry.

[@user-kf1vk5bc7o]

We need a follow up video, especially in light of Buffetts odd reasons for sale!!

[@soup100]

EXCELLENT analysis, as always.

[@sureshnishtala2887]

Wareen Buffet is my Guru since the time i entered investment industry and When i bought TSMC in July 2021 after looking at the MOATS it has i was quiet surprised to see why Berkshire didnt buy this till now and then when berkshire bought TSMC in Q3 I was not at all surprised to see him buy stake in TSMC... anyways thanks for the insights

[@nikmills]

Among my worst investments is VZ, which was a Buffett pick. So I'll hold it and hope for better, but following Buffett isn't how you do it. You do it by thinking for yourself.

[@TheHighborn]

I've been buying tsm for some time now. Great company. But my reasoning was less 'cos of the balance sheet, and more 'cos i like the tech

[@aluisious]

@@randy2811 You haven't been buying Nvidia for "some time now" then. If you're down on Nvidia you only got in very recently.

[@jmk1727]

I've used PIA for a couple of years now and I've had great service in Oregon, USA. Even had to deal with tech support once because of an issue and as a tech savy person I was impressed with their service 'after the sale' and plan to renew again when it's up in the beginning of next year....just an FYI 🤔👍

[@aluisious]

This is the second time I bought a stock a couple days before the news came out that Buffet was buying. The first time was Apple. I hope that's a good sign.

[@halbertconk3756]

Timestamp 14:59 the 2700 patents granted to huawei in 2021 must be international (not u.s.) right? or is there a backlog so we still had to process applications filled prior to banning them???

[@levyroth]

Yes, I can confirm PIA is an amazing VPN. I used it extensively in college to bypass my dorm's network limitation which banned gaming and porn in all forms. Good times.

[@gregdaweson4657]

Jesus, what school was that?

[@EbonySaints]

@@gregdaweson4657 Any college that is reputable. Even my local community college blocked access to a lot of sites, though I had a static IP at home and a VPS VPN to subvert that.

[@gregdaweson4657]

​@@EbonySaints​ I graduated two years ago, my alma mater did not do this stuff.

[@hx5525]

@@EbonySaints Speak for yourself. Which part of the world do u live in for this to be the norm?

[@quickquitter]

@@EbonySaints Damn, here I am watching pornography and playing games with my disreputable college degree. Hopefully I don't get fired from my WFH tech job where I play games and watch pornography.

[@avnavcgm]

I can't seem to find the 'AI & satellite imagery' video mentioned at 15:20. Does anyone have a link?

[@x2ul725]

Great update and nice job with the numbers, your input is very detailed

[@julianbell9161]

I was super confused by the title. I’m like “I know Watren Buffet is rich, but rich enough to just buy TSMC? I don’t know about that.”

[@do_regan]

"Sorry about the clickbait." -- Lol. Thank you for admitting to it (I've never heard a KZbinr acknowledge a clickbaity title).

[@hansvetter8653]

Astounding! Its the first violation against his very own foundational investment rules, I am aware of. The one rule he violates in this case is to invest only in businesses he understands himself!

[@niccam]

Great video it reinforced my my own thoughts a purchases of shared I made some time ago. This is not investment advice.

[@starkest]

Please one more video about why did he sell TSMC.

[@nathanieladams4375]

Great content Dude I wanna dive in semiconductor chip designing Please Where do I start?

[@Coillcara]

Study FPGAs.

[@nathanieladams4375]

Thanks man

[@kumpfanalytics1236]

Buy snorkel.

[@AT-rw3ou]

tsmc pays good dividend and is leap and bound ahead of the competition. Remember what happened to Qualcomm share price when they tried splitting order between tsmc and Samsung then Samsung wasn’t able to deliver?

[@MindFieldMusic]

Great video. Thanks!

[@AC-he8ln]

7:07 some sites are inaccessible in Taiwan so you need a VPN? Which sites?

[@SKAOG21]

Now make a video of why he sold TSMC shares

[@elucidatedvoyyd]

pia is great glad you got a sponsorship from them!!

[@americanalchemy]

Wow. I clicked and didn’t realize it was this (your) channel. Good great clickbait ;)😂 Edit -The smoking analogy was great as well.

[@jamesalias595]

Why? They had insider information of course, that is information we may not have yet.

[@spoddie]

I didn't know that they had access to cheap money, that makes a lot of sense

[@alexchomba3942]

Get your facts right: The most profitable investment in a tech stock was Naspers 2001 $36m, purchase of a 46.5% stake in Tencent that over 20 years grew to $200B+ including stake sales & dividends. Compounded by further investments using the proceeds of sales of the original stake, Naspers has earned $300B+ over 20 years. They still hold a $130B stake that has been put in a Dutch listed investment subsidiary Prosus.

[@PJDonoghue]

Great video as always. You do not need to be disingenuous or click bait your audience with the video title. I will watch anything you make. Perhaps something like "Warren Buffetts Lieutenants Large TSMC Shares Purchase" is a good alternative?

[@volvo09]

That's usually how buying shares is titled...

[@BaronVonQuiply]

Buffett calls Berkshire Hathaway perhaps his biggest mistake. He bought the textile company in order to fire someone. He then lamented years later that had he invested the money into insurance, he'd have made many more billions much earlier.

[@peterwan9076]

You don't need a rocket science degree to know that TSMC is very good for investment. It has its niche technology in semiconductor fabrication which is protected by IPs. Even Uncle Sam has to sought help from TSMC. What more you want from a company like that to invest? The only question is geopolitical issue: China. And it is not a coincidence that only Uncle Sam can answer the question with confidence. Such answer would not be available to ordinary folks like us. Buffett also has pocket that is deep enough to take the risk. In case of war, TSMC's price would collapse but the company would not. Uncle Sam makes sure that TSMC can continue in the US (Arizona). If war breaks out, Buffett might even buy more shares of the company at Great Depression price. The question is who has pocket as deep as Buffett's?

[@myessmith9577]

Buffet does not approve trades from the new managers. He has said so many times, they can purchase trades without him even knowing. They have full autonomy

[@BracaPhoto]

Confirmed BUFFETT obviously subscribes to the Asionometrey newsletter !! 👍

[@stocksheim540]

Loaded up on VIX calls

[@CalgarGTX]

I mean.. you don't have to be a multi billion dollar company with float, you can buy berkshire shares too.

[@JohnWilliams-gy5yc]

Gelsinger: I will prove you just approve the pick of wrong, old man. Gelsinger: Gosh darn it. Buffett doesn't think we can turn around. What do we do?

[@andre-le-bone-aparte]

Question: How did this Buffet Thesis go sideways with Munger's investment in Baba?

[@lowkaivuan]

Assuming China was captilistic like the USA

[@Socrates21stCentury]

Nice Job!

[@YoosufMuneer]

1:53 That $100B figure doesn't include the $11B worth of Apple stock they sold & the dividends they've received the purchase.

[@chinoonlim]

There is no crazy time only crazy leadership without plan and endgame. This what I find it crazy human inflicted chaos.

[@aaryankoura4933]

Thanks

[@niccam]

I love Pia VPN is really great! I use it myself, even on my phone.

[@benjaminnguyen554]

I believe TSMC is a good asset to acquire 😎

[@platoscavealum902]

Thank you.

[@_monti142]

i love TSMC, i would buy some just because i like them, if i made money thats a bonus too

[@juhotuho10]

I mean TSMC is in a healthy lead in a market that is fast becoming a monopoly, if you look how many players have left the fab industry in the last 2 decades, and it's not like computers will become obsolete any time soon...

[@joehurst6250]

*I think inflations is causing the current situation we already have now,increments in the price of gas,and rate of unemployment is becoming inconducive.it's obvious we are headed for hyperinflation, unfortunately having a job doesn't mean been safe rather having multiple income streams that doesn't depend on the government would be a great decision,*

[@kristlee8850]

thank you

[@dawnlightening]

With a high probability of inflation and/or recession and/or higher interest rates on the immediate horizon, the ultimate consumers of TSMC's products, namely Joe & Jane Doe, will likely forgo spending on said products. I'm expecting a repeat of the memory chip price crash in the super dense VLSI chips that are TSMC's forte. When (not if, but when) this occurs, its adios TSMC, Apple and ASML because their net return on capital will fall drastically.

[@sh7de553]

Buffett (and his managers probably) look for companies with a strong "defensive moat". TSMC and ASML may hurt in the short term but they're so far ahead technology, industrial capability and unit economics wise, no one can overtake them for now. If you want to make chips, you'll likely go to TSMC because you won't get better bang for buck anywhere else. It's almost like cigarette companies which Buffett loves in the past because the chip business is "hooked" on TSMC. Apple on the other hand could weather the storm simply because how much cash they have in the bank.

[@ArawnOfAnnwn]

@@sh7de553 "If you want to make chips, you'll likely go to TSMC because you won't get better bang for buck anywhere else" - only if you absolutely need the most advanced chips, which as even this channel has pointed out isn't necessary for most users.

[@havencat9337]

Wait till Intel gets their house in order, they have plenty of Gov Support and will eat TSMC how they did with Toshiba.

[@Martinit0]

@@havencat9337 Intel can't execute. $$ and influence don't help if you just can't do it technically.

[@aniksamiurrahman6365]

So, CPU/GPU and Mobile chip price is gonna rise even faster.

[@ricardokowalski1579]

Solid content

[@billkillernic]

Buffet buying TSMC means that he believes AMD's chiplet design is going to tear intel and nvidia a new one and probably AMD will become big enough to buy/merge with TSMC to become a gain a semicondoctor company with its own fab! ergo buy AMD stock now ppl

[@pflernak]

Yeah NO. TSMC is waaaay to big to be bought out by AMD any time soon, AMD isnt even their best or biggest customer. Apple buys most of their leading edge node capacity.

[@billkillernic]

@@pflernak yea that's the whole point of this "forecast" think meta (not the company) amd WILL become so big and bufett's move on TSMC just signals that to me (so that he can take advantage on when TSMC gets bought by AMD or merge with it,) . I can understand this being hard to follow you must be familiar with PC tech in order to get it. Google Moore's law just read the definition. Now after reading and getting what it means know that it is dead. The problem is that monolithic CPUs cant shrink more without physical and other issues as they used to in the past. AMD the past few years (and because of that their stock skyrocketed while just before being on the brink of collapse ) introduced a workaround to monolithic die limitations by using chiplets (zen architecture) and it seems that intel cant keep up, I mean ok they still seem to have a counteroffer on the table but the margins become smaller and smaller each new generation + it uses the same idea on GPUs now and as it seems AMDs 1000$ GPU will be almost as close as Nvidias 1600 one if not better and that's the first generation while nvidia resorted to make a huge 3 slot design with huge power usage requirements (in other words it seems that they cant do much better anytime soon) While amd only has to increase the number of chiplets.... So if things go right and e.g 1 or 2 generations after this one AMD beats Nvidia and intel in performance and performance/buck then yes it can become that big, dont forget the server market where they already begin to dominate + they have the console market as well PS5, Xbox run AMD they go to mobile too

[@pflernak]

@@billkillernic Take a look at what the market caps of AMD, Nvidia and Intel are. Even combined they are far from TSMCs market cap. So consoles cant possibly bring in enough money to buy out TSMC. Apple makes their own chips now and Microsoft is taking another go at moving to ARM. That just leaves AI and servers which granted will see great growth but likely also in large part go down the path of ASIC chips designed for the specific needs of the mega corporations leading those fields. Amazon, Google and Microsoft all design their own. Not to mention increased demand for AMDs products is also increased demand for TSMCs services. The value of both companies would go up at the same time practially excluding a buyout.

[@billkillernic]

@@pflernak Market cap is the price of the stock * the number of stocks.... e.g revenue etc dont get included in market cap Having that said you google search probably showed you the Taiwanese Dollar figure of TSMC's market cap because nvidia + intel + amd have a bigger market cap. and again market cap is a figure it is not a limit or physical problem when buying out something (and it makes sense for many reasons one easy to understand is that the more stock you sell and the faster you sell it the lower its price will be so having e.g 400 billion in market cap doesnt mean that the holders can get 400billion out of it because if they all sell the price will drop so probably they wont even get 200billion out of it.. hence if someone offers you e.g 250 to buy your company it makes sense to sell it ) So having that said there could be a merger which is not the same as an acquisition.

[@OperationXX1]

Hmm, unfortunately you can't invest in tsmc without considering the geopolitical risks. tsmc, absent geopolitical tensions, is massively undervalued ... however when you consider the high probability of China invading Taiwan, the risks outweigh the reward. I sincerely hope that the tensions cool down in that region so that the people of Taiwan continue living in peace and prosperity and so that the world continues benefiting from their ingenuity, however in the event of China invading Taiwan, value of tsmc will go down massively ...

[@xenuburger7924]

The governor of the renegade Chinese province of Taiwan, Tsai Ing Wen, just got voted out in the recent election. Chinese reunification if it ever happens will be peaceful and more prosperous than German reunification. With TSMC building fabs in the US, the Americans have some leverage to make deals in the event of geopolitical shifts.

[@floridaman318]

@@xenuburger7924 "renegade province" oh come on. Lol

[@floridaman318]

China isn't gonna invade Taiwan. Their threats mean about as much as the ones coming out of North Korea.

[@dunai2012]

The only understandable reason that Warren Buffett boldly bought TSMC at the scale of 4 billions is that TSMC is being slowly but firmly transformed to usmc, that is, an America based company. Mr Buffett never wanted to expose his investment under any risk, that means if TSMC is still Taiwan based, it'll be too risky to invest, but if it's going to be an American company, the return would be fatty and huge. The point is that Warren Buffett has seen the bright future of TSMC that most can't immediately see.

[@runawaysailing2032]

Absolutely.

[@System0Error0Message]

and so since intel has no interest in offering good value in its pricing phones, cars and computers are going to get very expensive that would cause either the computing industry to move back with lower performing silicon manufacturers or that computing will get out of the hands of many.

[@JesseBaker121]

That was a long advert

[@willhunter2625]

A high rate of patent acceptance is not a good indicator of high patent quality. The USPTO is much more likely to accept bad patents (too narrow) than good ones (broad)

[@EyesOfByes]

2:21 Apology accepted, I should have seen that coming. More dissapointed in myself :D I would have watched it anyway

[@rothn2]

I've never seen anyone use a 50% CI before...

[@kreek22]

Those who don't understand math apply formulas in formulaic fashion.

[@jollygreen4662]

Consumer demand is down for semiconductors, but the Military industry is thirsty for semiconductors... very thirsty

[@jackwisniewski3859]

The most impressive part of this video to me is the sponsorship. I've never seen someone keep so much integrity while doing a sponsor read. GJ.

[@Tarquin2718]

You are awesome!

[@pauld.103]

way off on 'estimated average price paid'. 13f price is just showing qtr end price. the only days $68.56 was even hit in q3 2022 was Sep 29 and Sep 30, and even 100% of shares combined of both days (26mm shares) are nowhere near the 60mm shares bought in q3 2022. assuming 20% of average daily volume through q3 2022 as is typical purchase approach for brk accumulation, and especially relevant for above average volume days through q3 2022, the likely average price paid is far closer to $79.90. sizeable oversight on your part to repeat an average price that wasn't even physically possible for 60mm shares.

[@pauld.103]

and as an aside, my belief is brk's TSM investment has likely doubled in share count already into q4 2022 to more than 121mm shares with average price paid now closer to $71 as of late November. there was likely more buying into early Q4, but the price weakness in mid October would have invited more aggressive buying from brk right up until brk's 13f was reported mid November. I'd be surprised to see their $4bln investment see a material drop in price to $60+/- in mid Oct that was not corresponding to anything remotely close to a change in risk profile of TSM or its fundamentals yet did not have a corresponding BUY MORE triggered at brk. that's highly unlikely. the probability that the TSM investment did not double in share count in q4 2022 is closer to nil than not in my view. and for what it's worth, this looks more likely a position that was started by Ted, than either Buffett or Todd, but definitely involves Buffett if at the larger size now.

[@mhx47]

In past 6 months, I understood what you are talking about in this video the least.

[@cinemaipswich4636]

When a company has a monopoly of making high-end chips, and no opposition in the near term, then buy buy buy.

[@red-baitingswine8816]

Intel is going into the fab business and is getting the lion's share of US govt subsidy, not TSMC, and Samsung is already right there with TSMC, or 1/2 step behind... Apple recently rejected TSMC's price increase for cutting edge chips.

[@floridaman318]

People really don't seem to understand what a monopoly actually is...

[@red-baitingswine8816]

All the pro-mainland-China videos are saying that the demand for cutting-edge chips is tanking and that mainland China is investing in "mature" chip fab - (14 nm and above?), which is lately being neglected.

[@idzkk]

Your unique essence in your content is fan noise 😎

[@MaxxPa1]

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[@f.c.2475]

Thought i'd point this out, nothing you wouldn't have come across yourself - Free Cash Flow is calculated AFTER all the Capex. Excuse me if you already knew. Thanks again for the good publications.

[@Martinit0]

Yeah I think he misspoke and actually meant operating CF. Since he showed the graph with both we can absolve him

[@f.c.2475]

@@Martinit0 yeah. Appreciate your comment. Thanks,

[@gamingcentral2295]

i wish for a time when warren buffet buys an eat all u can buffet

[@hyp-o-crite-]

why ? $ what else tsm = 90%+ 5nm

[@RomanVarl]

Thank you for the insights )

[@alquinn8576]

I don't think TSMC was/is undervalued, unless you make assumptions or predictions about future geopolitical outcomes. that is why Al Quinn is fully invested in Belle Delphine's bathwater instead!

[@BaronVonQuiply]

I stopped drinking Coca Cola for a bit. At the same time, Coke drops sank. As did Berkshire Hathaway (a large Coke shareholder). I'm not saying these are related... I'm just saying Warren may want to cut me a check before unfortunate accidents happen again. I'm in insurance.

[@davec8921]

LOL at all the people who think this is clickbait, it's really not that bad. Buffett = Berkshire, Berkshire bought a sizable position in TSMC, I don't see the issue. Sure you could assume he bought the whole thing but that's just you making that leap yourself.

[@bobby4500]

not so sure about tsmc, dont think theyll raise much

[@avgjoe-cz7cb]

Sometimes you think you know, but you don't. Thank you for a wonderful insight regarding TSMC.

[@LhotseMS]

Why buying a firm with monopoly on most important technology makes sense? Truly a puzzling mystery

[@floridaman318]

They don't have a monopoly...