Billionaire Masayoshi Son’s Top 5 Stock Picks for 2021

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In this article, we discussed billionaire Masayoshi Son’s top 5 stock picks for 2021. For a comprehensive list and portfolio performance please see Billionaire Masayoshi Son’s Top 10 Stock Picks for 2021.

5. Taiwan Semiconductor Mfg Co Ltd (NYSE: TSM)

Shares of Taiwan Semiconductor (NYSE: TSM) accelerated the upside momentum into 2021 on the back of strong demand for its products. TSM stock price is up 8% this year, extending twelve-months gain to 143%. SB Management held 11.9 million shares of Taiwan Semiconductor at the end of the latest quarter, up 278% compared to the previous quarter.

Bonsai Partners, which posted a return of 247% for the fourth quarter, highlighted the strong growth prospects for Taiwan Semiconductor in the Q4 investor letter. Here is what Bonsai Partners stated:

“Taiwan Semiconductor is the world’s largest outsourced foundry of logic semiconductor chips. TSMC’s shares appreciated 34.5% during the quarter. Taiwan Semiconductor continues to see unprecedented demand, albeit at a slightly less rapid growth rate than earlier in 2020. At the time of writing, TSMC announced strong fourth-quarter results and staggering growth in their expected capital expenditures for 2021 – growing from $17B in 2020 to $25B to $28B in 2021. Forward-looking capital expenditures are the key leading indicator of their medium-term growth rate expectations, and I expect TSMC management will continue to earn excellent returns on these colossal investments.

TSMC’s capital expenditure growth is likely due to investment in their new U.S. manufacturing footprint, rapid investment in their cutting edge process technology, as well as generally high levels of customer demand. Lately, we’ve seen semiconductor shortages in some of their less advanced process technologies, emphasizing the current state of the semiconductor supply-demand imbalance.”

Masayoshi Son  SB Management

Masayoshi Son of SB Management

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