Ask anyone to name the top investor of all time. Chances are you’d hear names like Benjamin Graham, Peter Lynch, and of course the Oracle of Omaha – Warren Buffett. Buffett is known for espousing the principles of value investing.
In the 1988 Berkshire Hathaway shareholder letter, he mentioned that ‘our favourite holding period is forever’. Behind this hyperbolic expression is Berkshire’s attitude towards being able to hold a stock over extended durations rather than speculating over truncated periods of weeks, months, and even years. Curiously, Berkshire appeared to have breached this code by buying and dumping a stock within a short span of three months.
In its 13F filings to the US Securities and Exchange Commission (SEC), Berkshire bought over US$4.1 billion worth of shares in Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) in the third quarter of 2022. Shortly after, the investment firm sold over 86% of its TSMC shares. Neither Berkshire Hathaway nor TSMC provided comments on the share sale...