After
In this selling wave, good companies and bad companies are abandoned together. "Investors have a pretty broad description of semiconductor companies, but these companies are not born equal. We focus on higher-quality semiconductor stocks, so selling like this has brought a good opportunity to buy quality semiconductor stocks such as TSMC." After
rose to a peak of $145 in January this year, TSMC's stock price has now fallen by half.
Jeffries pointed out that TSMC's factory provides chips for almost all devices, and is involved in many fields, from smartphones and artificial intelligence to the Internet of Things and cloud computing . The company also benefits from two industry trends: one is that chip manufacturers are turning to the fable model and handing over manufacturing business to others; secondly, customers' requirements for chip are becoming more and more complex, and TSMC has cutting-edge technology, and its technology and scale have brought a broad moat to the company.
TSMC's forward price-to-earnings ratio is 12.8 times, compared with the average price-to-earnings ratio in the past five years 21.4 times; the S&P 500's forward PM-to-earnings ratio is 16.5 times. John Rotonti of
Motley Fool also pointed out: "TSMC is seriously undervalued. It is the most attractive semiconductor company with stock prices that I am currently interested in."
Rotonti expects that TSMC's profit and free cash flow will grow at a rate of about 15% in the next five years.
Rotonti said: "The market demand for TSMC factories is very strong and long-term. I think the cyclical nature of TSMC's business will weaken in the future." Whether
's investment in is 's decision to 's Buffett's decision to 's two deputy Todd Combs or Ted Weschler's decision may trigger speculation, because compared with CTL and Weschler, Buffett generally doesn't have much concern about 's technology stock .
In addition to TSMC, Berkshire also added new investments in raw material manufacturer Louisiana-Pacific (LPX) and investment bank Jefferies (JEF) in the third quarter, buying 5.8 million shares and 433,558 shares of the two companies respectively.
"Ballons" pointed out that Buffett paid more attention to energy stocks this year. About half of Berkshire's stocks bought this year are energy stocks. Compared with Paramount Global, Activision Blizzard , HP and Citi , Chevron and OccupyPlus have brought Berkshire higher return on investment .
About 80% of Berkshire's stake in in were bought this year. Berkshire currently holds more than 8% of the stake in in the United States, , and the return on investment is also good. Barron's estimates that the average buying price is $140, and Chevron has now risen to $187.
Berkshire bought about 20% of Occupy Oil this year, with an estimated average purchase price around $50, and the stock has risen to $73 now.
Berkshire's investment in energy companies comes as some institutional investors withdraw from the energy industry. In September, Princeton University withdrew its investment in fossil fuel producers in favor of investing in the theme of "net zero emissions".
At last year's Berkshire shareholders' meeting, Buffett was asked about his investment in Chevron. Someone mentioned that fossil fuels caused to warm , and then asked why Buffett wanted to invest in oil stocks.
Buffett replied: "If you want your spouse, friend or job to be perfect, you will never find it. Chevron is not an 'evil' company, I have no regrets investing in Chevron's stock. If I own the entire company, I will not feel uncomfortable because I am in this industry."
In addition, when the quarter, Berkshire increased its holdings in Paramount Universal (PARA) by 12.8 million shares to 91.2 million shares, currently worth $1.7 billion. Paramount Universal's share price fell 38% this year, and Berkshire currently holds a 14% stake in the media company.
Berkshire also increased its holdings of 2 million shares of retailer Kroger (KR), with a holding of 52.4 million shares worth $2.5 billion.
Berkshire also reduced its holdings of 10.1 million shares of Bank of New York Mellon in the quarter, and its holdings dropped to 62.2 million shares, currently worth $2.7 billion.
Berkshire cut its holdings in Activision Blizzard (ATVI) by 8 million shares to 60.1 million shares, currently worth $4.4 billion. Due to antitrust-related issues, Activision Blizzard's stock price has recently fallen to $74, far below the Microsoft 95 acquisition offer.
's holdings in Apple (AAPL) and Bank of America (BAC) have not changed. Berkshire holds about 895 million shares of Apple, worth $132 billion. Apple still ranks first in the top ten heavily held stocks, accounting for about 40% of the entire stock portfolio. Berkshire holds about 1 billion shares of Bank of America, worth $38 billion.
article | Chinese version writer Guo Liqun
editor | Peng Ren
copyright statement:
original articles from "barronschina" (barronschina) may not be reproduced without permission.
(The content of this article is for reference only, and investment advice does not represent the tendency of "Barron's"; the market is risky, so investment must be cautious.)
rose to a peak of US$145 in January this year, TSMC's stock price has fallen by half.
Berkshire Hathaway (BRK.A, BRK.B) posted a 13-F quarterly report after the market on Monday (November 14) that in the third quarter, Berkshire spent more than US$4 billion to build a position in TSM, and sold financial stocks such as the United States and the Chinese Bank of China (USB) and Bank of New York Mellon (BK) during this period.
Other recent filings submitted by Berkshire show that the company continued to increase its holdings in stake in Chevron (CVX) and Oxy Petroleum (OXY) in the third quarter.
's purchase of TSMC's stock was a highlight of Berkshire's 13-F report. Some analysts believe that the selloffs encountered by semiconductor stocks this year have brought opportunities to long-term investors with enough patience to buy high-quality stocks, and TSMC is one of them.
TSMC is seriously underestimated
semiconductor stocks have fallen heavily this year, with iShares Semiconductor ETF (SOXX) falling 40.5%, compared with S&P 500 falling about 20%.In this selling wave, good companies and bad companies are abandoned together. "Investors have a pretty broad description of semiconductor companies, but these companies are not born equal. We focus on higher-quality semiconductor stocks, so selling like this has brought a good opportunity to buy quality semiconductor stocks such as TSMC." After
rose to a peak of $145 in January this year, TSMC's stock price has now fallen by half.
Jeffries pointed out that TSMC's factory provides chips for almost all devices, and is involved in many fields, from smartphones and artificial intelligence to the Internet of Things and cloud computing . The company also benefits from two industry trends: one is that chip manufacturers are turning to the fable model and handing over manufacturing business to others; secondly, customers' requirements for chip are becoming more and more complex, and TSMC has cutting-edge technology, and its technology and scale have brought a broad moat to the company.
TSMC's forward price-to-earnings ratio is 12.8 times, compared with the average price-to-earnings ratio in the past five years 21.4 times; the S&P 500's forward PM-to-earnings ratio is 16.5 times. John Rotonti of
Motley Fool also pointed out: "TSMC is seriously undervalued. It is the most attractive semiconductor company with stock prices that I am currently interested in."
Rotonti expects that TSMC's profit and free cash flow will grow at a rate of about 15% in the next five years.
Rotonti said: "The market demand for TSMC factories is very strong and long-term. I think the cyclical nature of TSMC's business will weaken in the future." Whether
's investment in is 's decision to 's Buffett's decision to 's two deputy Todd Combs or Ted Weschler's decision may trigger speculation, because compared with CTL and Weschler, Buffett generally doesn't have much concern about 's technology stock .
In addition to TSMC, Berkshire also added new investments in raw material manufacturer Louisiana-Pacific (LPX) and investment bank Jefferies (JEF) in the third quarter, buying 5.8 million shares and 433,558 shares of the two companies respectively.
continues to increase its holdings of energy shares
In the third quarter, Berkshire increased its holdings of Chevron by 3.9 million shares to 165.3 million shares, currently worth $31 billion; it increased its holdings of Occupy Petroleum by 35 million shares to 194.3 million shares, currently worth $14 billion."Ballons" pointed out that Buffett paid more attention to energy stocks this year. About half of Berkshire's stocks bought this year are energy stocks. Compared with Paramount Global, Activision Blizzard , HP and Citi , Chevron and OccupyPlus have brought Berkshire higher return on investment .
About 80% of Berkshire's stake in in were bought this year. Berkshire currently holds more than 8% of the stake in in the United States, , and the return on investment is also good. Barron's estimates that the average buying price is $140, and Chevron has now risen to $187.
Berkshire bought about 20% of Occupy Oil this year, with an estimated average purchase price around $50, and the stock has risen to $73 now.
Berkshire's investment in energy companies comes as some institutional investors withdraw from the energy industry. In September, Princeton University withdrew its investment in fossil fuel producers in favor of investing in the theme of "net zero emissions".
At last year's Berkshire shareholders' meeting, Buffett was asked about his investment in Chevron. Someone mentioned that fossil fuels caused to warm , and then asked why Buffett wanted to invest in oil stocks.
Buffett replied: "If you want your spouse, friend or job to be perfect, you will never find it. Chevron is not an 'evil' company, I have no regrets investing in Chevron's stock. If I own the entire company, I will not feel uncomfortable because I am in this industry."
In addition, when the quarter, Berkshire increased its holdings in Paramount Universal (PARA) by 12.8 million shares to 91.2 million shares, currently worth $1.7 billion. Paramount Universal's share price fell 38% this year, and Berkshire currently holds a 14% stake in the media company.
Berkshire also increased its holdings of 2 million shares of retailer Kroger (KR), with a holding of 52.4 million shares worth $2.5 billion.
reduced its holdings in financial shares; Apple is still the largest holdings in
In the third quarter, Berkshire reduced its holdings of 42 million shares of the United States and Zhongbank to 77.8 million shares, and further reduced its holdings to 52.5 million shares in October. According to a recent filing, these holdings are currently worth about US$2.3 billion.Berkshire also reduced its holdings of 10.1 million shares of Bank of New York Mellon in the quarter, and its holdings dropped to 62.2 million shares, currently worth $2.7 billion.
Berkshire cut its holdings in Activision Blizzard (ATVI) by 8 million shares to 60.1 million shares, currently worth $4.4 billion. Due to antitrust-related issues, Activision Blizzard's stock price has recently fallen to $74, far below the Microsoft 95 acquisition offer.
's holdings in Apple (AAPL) and Bank of America (BAC) have not changed. Berkshire holds about 895 million shares of Apple, worth $132 billion. Apple still ranks first in the top ten heavily held stocks, accounting for about 40% of the entire stock portfolio. Berkshire holds about 1 billion shares of Bank of America, worth $38 billion.
article | Chinese version writer Guo Liqun
editor | Peng Ren
copyright statement:
original articles from "barronschina" (barronschina) may not be reproduced without permission.
(The content of this article is for reference only, and investment advice does not represent the tendency of "Barron's"; the market is risky, so investment must be cautious.)
