Duan Yongping has too much cash on hand and is eyeing Taiwan Semiconductor this time, "it's not just for fun."
Investment tycoon Duan Yongping, holding a large amount of cash, is reassessing the investment value of Taiwan Semiconductor. He believes that Taiwan Semiconductor's business model and corporate culture are strong and is beginning to seriously consider investing. Duan Yongping emphasizes the importance of the economic moat and compares the competitiveness of NVIDIA and Taiwan Semiconductor. He mentions the importance of focus, believing that Taiwan Semiconductor's focus in the foundry sector will enable it to surpass United Microelectronics and Samsung in the future
Investment mogul Duan Yongping has been feeling a bit troubled lately. It's not because the stock market has dropped or that his company is facing a crisis—it's because he has too much cash.
In a conversation with Xueqiu on the 8th, Duan Yongping candidly stated that since he gradually cleared out some of his put options on Tencent and NVIDIA, with a large amount of cash in hand, he has begun to reassess the investment value of Taiwan Semiconductor. Although he recognized Taiwan Semiconductor's excellence 35 years ago, he had hesitated to invest due to its capital-intensive nature.
Now, he believes that Taiwan Semiconductor's "business model and corporate culture are very strong, it’s not for fun," and he is seriously considering investing.
Duan Yongping places great importance on companies with a "moat." He believes that a moat is essential for a company's long-term competitiveness. When discussing NVIDIA and Taiwan Semiconductor, he stated: “I’m not very sure how strong NVIDIA's moat is, but at least I know it is still very strong. Taiwan Semiconductor and Microsoft are both very powerful B2B companies; I was late to realize this.” He thinks, “B2C businesses are easy to understand because you can see the product directly, while B2B is a bit difficult unless you happen to be a user.”
When commenting on United Microelectronics Corporation (UMC) and Samsung, Duan Yongping also mentioned the importance of focus. He said, “30 years ago, I told the people at UMC that in the future, Taiwan Semiconductor would be far more powerful than UMC and Samsung because Taiwan Semiconductor is very focused and only focuses on foundry services.”
He quoted a line from Hamlet, emphasizing that “to be honest with others is to not deceive oneself.” He believes that the failures of Samsung and Intel in their technological paths may also be related to their dishonesty with themselves.
