2023-05-18 a bet on TSMC
May 18, 2023•213 words
My usual principles
As of 2023-05-18 1151 PST, on the Gurufocus website, the fair value (using the discounted cash flow DCF model) of the stock of Taiwan Semiconductor Manufacturing Co., aka TSMC (ticker: TSM) is $168.84. As of 2023-05-18 1153 PST the stock trades at $92.74. For me, this indicates that the stock is basically trading at a "steal." So what did I do? Well, 2-3 months prior to this, I already bought x shares. And now I own 2x shares.
What happened in the meantime
The stock more or less fluctuated between $83-$95 in that time. One can imagine my frustration of all the fluctuations because of people panicking due to whatever news coverage laid havoc on the stock. Nonetheless, I still remain confident in the underlying financials and balance sheet. It's interesting to note that even w all the macro-economic mess going on, the company seems to have a crack leadership team and has a focus on expanding beyond just one country w respect to manufacturing. This seems to be consistent w the long-term thinking of many of these Asian companies.
What to do now
Nothing in particular. It's nice to own a very small part of a company that has a huge part in my iPhone though.