ASML may have been a better investment for Berkshire?

ASML manufactures equipment to make semiconductors. Taiwan Semiconductors is a customer.

The following shows the relative strength of TSM versus ASML.

TSM is stronger when the vertical line is GREEN. ASML is stronger when the vertical line is RED.

It may make an excellent pairs trade. The correlation is very high.

Prices are pre-opening on November 17, 2022.

Berkshire Hathaway and Taiwan Semiconductor Manufacturing

Yesterday WSJ (Nov 16, 2022) noted in its latest filings that Berkshire Hathaway, which in the past had avoided technology, had purchased 60 million shares of TSMC valued at roughly $4.1 billion which is one of Berkshire’s top 10 holdings.

The following graph shows TSM’s price history over the past few months.

Volume is at the bottom.


Prices are as of 8:30 on November 17, 2022