Billionaire investment mogul Warren Buffett has sold his entire remaining stake in Taiwan chipmaker TSMC, regulatory filings showed, days after saying he had reevaluated the risks of investing in Taiwan.
Buffett’s investment group Berkshire Hathaway shed its TSMC position just six months after revealing a $4.1 billion investment in the world’s largest contract chipmaker.
Berkshire first dumped 86.2% of that stake in February. The move surprised investors as it is rare for Buffett to quickly undo a multi-billion dollar stock investment.
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In April, Buffett revealed the decision to reduce the stake followed geopolitical tensions between the United States and China and a growing concern China might soon invade Taiwan or try to reclaim the island nation.
During Berkshire’s annual meeting earlier this month, Buffett said TSMC is a “marvelous company,” but that he felt more comfortable with investing in Japan than Taiwan.
Berkshire sold its remaining 8.9 million US-listed TSMC shares for around $700 million, Taiwan News reported.
Big funds pour in millions
Berkshire’s moves were revealed in the group’s 13-F filings on Monday, which disclose investment firms’ portfolios. These are closely watched for trends even though the data is released with a delay and can be dated.
Filings showed big investment firms including Macquarie, Fidelity, Tiger Global and Coatue were among the largest buyers of US listed shares of TSMC, in the first quarter.
Macquarie added roughly 78 million new American Depositary Shares (ADRs) of TSMC to an existing position, and ended March with $7.3 billion in the company.
Fidelity bought 14.1 million new TSMC shares, increasing its bet on the company to nearly $4 billion.
Coatue Management, founded by Philippe Laffont, built a new position in the chipmaker as it bought 5.9 million shares, worth $548.9 million.
Tiger Global Management acquired $147.8 million in shares.
US-listed shares of TSMC have gained nearly 14.5% this year.
- Reuters, with additional editing by Vishakha Saxena
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