Warren Buffett oversaw a nearly 6,100,000% gain in Berkshire Hathaway’s Class A shares, leading to a trillion-dollar market cap. However, a short-term trade in Taiwan Semiconductor Manufacturing became an expensive mistake, costing Berkshire approximately $16 billion. Buffett’s unwritten investing rules were the foundation of Berkshire’s success, emphasizing long-term mindset, value, competitive advantages, trust, and capital-return programs.

During the third quarter of 2022, Buffett purchased a significant stake in TSMC, a chip fabricator at the forefront of the AI revolution. However, Berkshire sold 86% of its TSMC stake within a year, missing out on substantial growth. Buffett cited geopolitical concerns as the reason for the quick exit, ultimately costing Berkshire close to $16 billion.

Berkshire’s new CEO, Greg Abel, is likely to continue following Buffett’s investing philosophy. Before buying stock in TSMC, consider other top stock picks from The Motley Fool’s Stock Advisor team, which has a total average return of 950% compared to the S&P 500’s 197%. Don’t miss out on potential monster returns by exploring the 10 best stocks to buy now.

Read more at Nasdaq: Warren Buffett Broke One of His Most Important Investing Rules, and It’s Cost Berkshire Hathaway $16 Billion (and Counting)