Warren Buffett Sells Billions in Taiwan Stock, Senator Bets Against It – Is A War For Taiwan Coming?

The ‘Oracle of Omaha,’ Warren Buffett, is a living legend among investors and even to the uninitiated laymen, known for his buy-and-hold strategy. So when he turns around and drops a stock like it’s searing his hands it isn’t idly done. He’s just done that in a big way in Taiwan.

Forbes reported that the Berkshire Hathaway CEO, now 92, dropped a $4.1 billion stake in Taiwan Semiconductor Manufacturing Co. (TSMC) in less than a quarter “in part owing to the risk of war in the island nation.”

Notably, according to Quiver Quantitative, Senator Tommy Tuberville (R-AL) has reportedly purchased put orders on the stock, essentially a bet that the stock will drop.

Twitter financial commentator Wall Street Silver shared a video from Quiver Quantitative Friday asking, “Warren Buffett selling all of his Taiwan Semi, plus US Senators buying Puts on Taiwan Semi … Things that make you wonder … is war about to break out?”

Warren Buffett selling all of his Taiwan Semi, plus US Senators buying Puts on Taiwan Semi …

Things that make you wonder … is war about to break out?

🔊🤨 pic.twitter.com/PJ8vV2nAkA

— Wall Street Silver (@WallStreetSilv) April 13, 2023

Forbes reported, in an interview with Nikkei, that Buffett said that rising geopolitical tensions were “a consideration” in his decision.

Chris Miller wrote in Chip War, the FT’s Business Book of the Year for 2022,

“A single missile strike on TSMC’s most advanced chip fabrication facility could easily cause hundreds of billions of dollars of damage [to the global economy] once delays to the production of phones, data centers, autos, telecom networks, and other technology are added up.”

As tensions ratchet up between Washington and Beijing and Taipei finds itself trapped in the middle with the political instability of an upcoming Presidential election on the horizon that will not see incumbent Tsai Ing-wen on the ballot, instability in the de facto island nation seems inevitable.

The No.1 threat to peace in the Taiwan Strait is “Taiwan independence” forces and foreign connivance & support for their activities. We hope the world will follow the one-China principle and oppose all Taiwan-related separatist activities. pic.twitter.com/vVKDxBOvLC

— Spokesperson发言人办公室 (@MFA_China) April 10, 2023

CHINA THREATENS ACTION AFTER CONGRESSIONAL LEADER PLANS VISIT TO TAIWAN

Many commentators have also noted that demographically and from a logistical standpoint China must act soon to make a play for Taiwan or its capacity to do so will pass.

The writing seems to be on the wall. And as Forbes cited, four-star General Mike Minihan warned on NBC News in January,

“My gut tells me [we] will fight in 2025.”