No. of Recommendations: 3
I think there’s a reason why US companies decided to invest billions to move suppliers out of China, and US govt is giving intels billions to build chip plants. These guys are spending real money. Imo, they have concrete information to make them spend such money.
Buffett is correct selling out of BYD and TSM, and Apple. The geopolitical will get a lot worse after election. I didn’t believe China will invade Taiwan, but increasingly I believe this will happen . In fact, China has claimed this will happen by 2027.
I am glad someone voiced a completely opposite view (truly appreciate).
Nowhere is safe (at least during that period) if it unfolds as you foresee. Will BYD, TSM, and Apple be largely destroyed and other Berkshire's investments spared if and when it happens (with more than a year of lead time to the flashing red light)? Is it wise to pay such a hefty cost just in case it happens? And if it doesn't? But how about selling the rest of the holding in Apple? How about loading up on stocks in key commodities and in defense industry?
It is always tricky to predict future events and market conditions. It is trickier to position investments accordingly to something that might or might not materialize, unless you can read into every decision makers' minds.
