Berkshire Hathaway Trims TSMC Stake, Dumps Entirety of HP, Chevron Positions
0h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
berkshire-hathawaywarren-buffett
Fazen Markets Editorial Desk
Collective editorial team · methodology
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Warren Buffett’s Berkshire Hathaway filed its quarterly portfolio update on 24 May 2026. The filing disclosed a significant reduction in the conglomerate’s position in Taiwan Semiconductor Manufacturing Company, as well as the complete elimination of its holdings in HP Inc. and Chevron Corporation. This coordinated exit from multiple sectors represents one of the most concentrated portfolio purges executed by Berkshire in recent years, signaling a decisive strategic shift by its investment managers.
The last time Berkshire executed a similarly large-scale exit from a core holding was in 2020, when it sold its entire stakes in the four major US airlines—American, Delta, Southwest, and United—taking a multi-billion dollar loss at the onset of the pandemic. The current macro backdrop features elevated Treasury yields, with the 10-year note trading near 4.4%, and persistent geopolitical friction affecting global supply chains. The trigger for this specific reallocation appears to be a confluence of valuation reassessments and strategic realignment, as Berkshire’s cash pile swelled to record levels exceeding $180 billion, pressuring the firm to deploy or reallocate capital more efficiently.
Berkshire’s initial investment in TSMC in late 2022 was viewed as a surprising but strategic bet on the long-term dominance of semiconductor manufacturing. The subsequent partial sale suggests a tactical retreat, possibly due to heightened regional geopolitical risks surrounding Taiwan. The exits from HP and Chevron indicate a broader move away from legacy hardware and traditional energy, sectors where growth prospects are viewed as mature and cyclical. These sales free up substantial capital that could be redirected toward new acquisitions or share buybacks.
Berkshire Hathaway sold approximately 86.2 million shares of TSMC, reducing its stake by roughly 60% from the prior quarter. The remaining position is valued at around $5.8 billion based on TSMC’s closing price of $175.42 on 23 May. The firm sold its entire 120 million-share position in HP Inc., worth approximately $3.6 billion, and its entire 110 million-share stake in Chevron, worth about $19.2 billion. The combined proceeds from these three sales exceed $28 billion.
| Position | Q4 2025 Holdings | Q1 2026 Holdings | % Change | Est. Proceeds ($B) |
|---|---|---|---|---|
| TSMC | ~143.7M shares | ~57.5M shares | -60% | ~15.1 |
| HP Inc. | 120M shares | 0 | -100% | ~3.6 |
| Chevron | 110M shares | 0 | -100% | ~19.2 |
This selling activity contrasts sharply with the S&P 500’s year-to-date performance of +7.2%. The scale of the Chevron exit is particularly notable, as Berkshire had been a top-five shareholder. The sales occurred as the VIX volatility index averaged 17.5 during the quarter, indicating relatively calm market conditions, not forced selling under duress.
The immediate second-order effect was a 2.8% drop in HP’s share price in after-hours trading following the filing’s release. TSMC’s American Depositary Receipts fell 1.5%, underperforming the PHLX Semiconductor Index (SOX), which was flat. Energy sector ETFs like XLE may face indirect selling pressure as other investors reassess the sector’s appeal without Berkshire’s endorsement. Conversely, sectors like insurance and industrials, where Berkshire maintains core holdings, could see increased investor interest as capital is potentially recycled within the portfolio.
A key counter-argument is that these sales are not a bearish call on the individual companies but a function of portfolio management—selling winners to fund new opportunities or increase liquidity for a potential large acquisition. The risk is that Buffett’s successors, Todd Combs and Ted Weschler, are initiating a more active trading strategy that departs from Buffett’s traditional “buy-and-hold-forever” ethos. Positioning data shows institutional flow moving out of traditional energy and into technology infrastructure and healthcare. Options activity suggests some funds are using the news to establish short-term bearish positions in the sold names while going long on Berkshire’s remaining top holdings like Apple and Occidental Petroleum.
The next major catalyst is Berkshire Hathaway’s annual shareholder meeting, scheduled for 2 May 2027, where executives may provide context for these sales. Investors will monitor the firm’s Q2 2026 filing, due by 14 August, for new position initiations that could reveal the destination of the freed capital. Key levels to watch include TSMC’s $165 support level, a breach of which could signal further institutional selling, and Chevron’s 200-day moving average near $172.
If Berkshire uses the proceeds for a major acquisition, candidate sectors include global infrastructure or a full buyout of a publicly traded industrial firm. Should the capital remain unallocated, it increases the likelihood of an accelerated share repurchase program for Berkshire’s own stock. The market will analyze the upcoming Fazen Markets report on institutional capital flows for confirmation of broader sector rotation trends.
Retail investors should not interpret this as a direct signal to sell, as Berkshire’s scale and tax considerations are unique. However, it highlights the importance of conducting independent analysis on a company’s core business moat and growth trajectory, regardless of who the shareholders are. The exit suggests Berkshire’s managers see limited incremental value or heightened risk in these specific names, a thesis individual investors can research further on platforms like Fazen Markets.
Historically, Buffett’s most notable sales were driven by a fundamental deterioration in a business thesis, as with the airline stocks in 2020. This recent trim of TSMC and exit from HP is more reminiscent of his sale of IBM shares between 2017-2018, where he acknowledged a miscalculation in the investment’s long-term competitive edge. The Chevron sale is unusual given its previous status as a core energy holding, potentially indicating a strategic pivot away from fossil fuels.
Berkshire’s cash and Treasury holdings have repeatedly set records, exceeding $180 billion. Historically, such large cash reserves have preceded major acquisitions, such as the purchase of Precision Castparts in 2016 for $32 billion, or periods of aggressive share buybacks, like the $27 billion repurchased in 2021. The current purge may be a precursor to deploying this ‘dry powder’ into a sizable transaction, as the hurdle rate for public equity investments appears high.
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