Warren Buffett's $16 Billion Mistake Breaks His Own Investing Rule

The Oracle of Omaha's rare moment of shortsightedness cost Berkshire Hathaway dearly.

Jan. 30, 2026 at 3:31am

Got story updates? Submit your updates here. ›

Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, broke one of his own key investing rules by making a short-term trade in Taiwan Semiconductor Manufacturing (TSMC) that cost his company nearly $16 billion. Buffett is known for his long-term, value-focused investment approach, but his decision to quickly sell off most of Berkshire's TSMC stake after just 5-9 months went against his typical philosophy. The move came as TSMC's stock price surged, making Buffett's premature exit a costly mistake.

Why it matters

Buffett's investing principles, such as a long-term mindset, focus on value, and preference for companies with sustainable competitive advantages, have been the foundation of Berkshire Hathaway's incredible success over the decades. This rare misstep highlights how even the Oracle of Omaha can sometimes stray from his own playbook, with significant financial consequences for his company.

The details

In the third quarter of 2022, Berkshire Hathaway built a $4.12 billion stake in TSMC, the world's leading semiconductor foundry. Buffett saw TSMC's unique positioning and potential to benefit from the AI revolution. However, in the following two quarters, Berkshire sold off 86% and then completely exited the position. Buffett cited concerns over TSMC's location and potential export restrictions as reasons for the quick sale. But TSMC's stock price subsequently skyrocketed, with the company joining the trillion-dollar market cap club in 2025. If Berkshire had held its initial TSMC stake, it would now be worth close to $20 billion, representing a nearly $16 billion missed opportunity.

  • In the third quarter of 2022, Berkshire Hathaway built a $4.12 billion stake in TSMC.
  • In the fourth quarter of 2022, Berkshire sold 86% of its TSMC stake (51,768,156 shares).
  • In the first quarter of 2023, Berkshire completely exited its position in TSMC.

The players

Warren Buffett

The legendary investor and CEO of Berkshire Hathaway, known for his long-term, value-focused investment approach.

Taiwan Semiconductor Manufacturing (TSMC)

The world's leading semiconductor foundry, which became a member of the trillion-dollar market cap club in 2025.

Greg Abel

The new CEO of Berkshire Hathaway, who is likely to continue Buffett's long-term investing philosophy.

Got photos? Submit your photos here. ›

What they’re saying

“I don't like its location, and I've reevaluated that,”

— Warren Buffett (Wall Street analysts)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.