Buffett can regret the sale of this reserve News ad

Warren Buffett is one of the most respected and widely consistent investors in modern financial markets. He has a track record of success, which covers several decades and recently demonstrated his ability from time to time, ahead of what turned out to be almost a record month from the point of view of volatility for S&P 500 indexField

Although his success is high enough to justify his glory, one decision can weigh it in the coming years.

TAIWAN SEMICONDUCTOR ManUFACTURING today

TSM

Taiwan semiconductor production

$ 163,27 -1.83 (-1,11%)

From 13:59 on East

52-week range

$ 133.21

▼

$ 226.40

Dividend yield

1.32%

P/e ratio.

23.19

Value is valuable

$ 212.00

This decision was to sell one of the leading shares in the technological sector not only in the United States, but throughout the world, since this company owns and manages the vast majority of chips and The semiconductor supply chain And logistics around the world.

Perhaps waiting for potential consequences Trading tariffsOr in other ways, trying to avoid some geopolitical tension in general, the sale of a buffet of this industry leader may become regret later.

The action under consideration Taiwan semiconductor production NYSE: TSMField

As soon as investors find out, this action is as attractive today as and when Buffett was first interested in – if not more. Its importance was only strengthened, while his relative discount on all temporary maximums offers investors a fantastic Risk factor for remuneration In today’s unstable environment.

Discount on the semiconductor reserves of Taiwan: equally good

There is one undeniable aspect in most cases that Warren Buffett and other investors, such as him, love to look in investments: a clear discount. Now that the shares of Taiwanese semiconductor shares up to 73% of their 52-week high level is tradedThis reality may begin to stand in all directions, despite the current trade tariffs.

At this low price, bear merchants, it seems, attacked the likelihood that the tariffs of President Trump will lead to the worst scenario for Taiwanese semiconductors and other industry shares, although the reality today seems a little different.

Now that the export of chips from China was released, some of these fears have become irrelevant, opening the way for reserves, so that the tendency to increase and repeatedly, previous maximums, if not to make new ones. Certainly, The price action is not that Buffett is engaged inSo, here are some fundamental factors that matter.

Financial profile: Makeup for connecting

If there is something that distinguishes business from the rest of the package, then this is the level of profitability that it generates, and it all starts with the level of gross profit. Since high gross profit usually indicates purchasing power and share in the market above average, Buffett and other investors, as a rule, are looking for this.

The financial results of Taiwan of the semiconductor show that up to 57.4% of the gross margin have been obtained over the past 12 months, giving the Green Light the belief that this company has a certain price power and a significant share of the market. Now these advantages have begun to penetrate something much more critical that investors hunt all the time.

The high level of deduction from each sale allows management to more effectively distribute capital, in essence, accelerating the speed at which the cost is combined in business, and this can be quantitatively estimated Return of the invested capital rate (roic)Field

Taiwanese semiconductor reported up to 22.3% in Roic Over the past year, an extremely attractive level, given that the annual productivity of shares for shares, as a rule, corresponds to the long -term medium rate of Roic of any business, so investors should consider this previous choice of Buffett as the one that is still worth it today.

The market took on the Taiwanese semiconductor

It is one thing to see these figures and become bullish as an individual. Nevertheless, individualism is very rarely turned into a profit in this business, since a wider market should be aware of the same point of view, and then move shares in this direction. That is why registration with other participants, starting with analysts by Wall Schell, is important.

When it comes to these analysts, investors can see that Consensus target price The U.S. $ 212 per share is still being established, despite all the negative headlines surrounding semiconductor shares, which means implies for the dignity of 28.3% Still present in the future of this action, which will use those who wish investors.

Speaking of taking advantage, some investors have already begun to do only recently, as you can see By 11.7% an increase in assets received from institutional distributors In the group of the MASTER. This step raised his entire position to a maximum of $ 1.1 million today, but, more importantly, he made it clear, despite the fact that the storm markets were.

Before considering the Taiwanese production of semiconductors, you will want to hear this.

Marketbeat monitors the highest and most effective analysts with the most effective Wall Street analysts and promotions that they recommend to their customers daily. Marketbeat has identified five shares that leading analysts quietly whisper to their clients to buy now before a wider market is conquered … and the Taiwanese semiconductor production was not on the list.

While Taiwan Semiconductor Manuapacturn is currently a moderate purchase rating among analysts, analysts with the highest rating believe that these five promotions are better buying.

View five shares here

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