Buy $Taiwan Semiconductor (TSM.US)$ or not? And P/E analysis & China
$Taiwan Semiconductor (TSM.US)$ I am a bullish for TSMC. As Retired investment advisor i try to understand the Trend and i am always looking for a company with good fundamentals and future. Good investment on capital (ROIC) and free cash flow (FCF). I am against very cheap shares like #Warren Buffet's method precisely because we are not like Warren Buffett.
When shares are cheap there is always a reason for it. TSM is not cheap but if you understand this is the Greatest Foundry in the world and everybody needs the high-performance memory-intensive chips for AI (Artificial Intelligence) then you understand that this stock is a good investment for the next Era.
When shares are cheap there is always a reason for it. TSM is not cheap but if you understand this is the Greatest Foundry in the world and everybody needs the high-performance memory-intensive chips for AI (Artificial Intelligence) then you understand that this stock is a good investment for the next Era.
Price Earnings analysis.
The (expected) P/E is an expectation phase, but "fundamentally" this says something about the "past" and certainly not about the "real" results in the future because we do not know that in reality. The expected P/E is therefore something from the past, not about the 'real' future! This can be either good or bad. It's always a guess. For Example . . . , if profits double, the P/E that was 50 is now suddenly only 25. If earnings again double is P/E now 12,5 ?
Money flows
Stock analysts always lag behind prices. They always upgrade or downgrade the price target after the results are good or bad. It's mostly a guess. It is best to make your own assessment based on fundamentals, trends and global economic evolution. Will money flow into the stock market or not? Now take China as an easy example? The point is, will money go into Chinese stocks or not even if the fundamentals are good? But keep in mind that the United States is the Greatest economy in the world and will remain so for a long time
Keep it simple
Look at the global picture. Investing is not a casino game ![]()
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