By Karen
Returning to the embrace of podcasting to introduce favorite books with everyone!
TSMC has been hailed as Taiwan's "protector of the nation." It is currently the world's highest market cap semiconductor company, with assets equivalent to international enterprises like Samsung, Tencent, and Apple. TSMC's stock price reached 300 points by the end of 2019. After the first wave of COVID-19 in early 2020, it only dropped back to 276 points. Since then, TSMC has soared all the way, until June 11 this year when TSMC closed at 602 points. All of Taiwan's people and nearly the entire world have focused their attention on it. In fact, eighteen years ago, a financial planner named Que You-shang identified TSMC as a "slow-rising stock." He entered in 2003 and documented how TSMC deployed a powerhouse team "ONE TEAM" to Apple in 2011, securing subsequent chip orders.
I'm sharing this book in particular because over the past six months I've also started researching stocks. What surprised me most is that TSMC's dividends are actually paid "quarterly." My previous understanding of dividend distributions was only once a year. But it turns out TSMC distributes dividends every three months. This feeling of receiving small payments frequently is really wonderful!!!
I just regret I didn't wise up earlier and learn financial management and investing QAQ
《The Revelation of Slow-Rising Stock TSMC: Discovering the Characteristics and Deep Investment Value of First-Class Enterprises》, published by Commonwealth Magazine, was written by financial planner Que You-shang, who went to the United States in 1985. In 2003, he first purchased TSMC for the mutual fund he managed. After waiting 18 years, TSMC became his sixteenth 10-bagger stock in his fund management career. In this book, he reveals how TSMC won over Apple's orders.
The book mentions that TSMC's trinity includes "technological leadership, with R&D as a leading indicator," "manufacturing leadership, shifting toward a service-oriented approach," and "customers as partners, winning customer loyalty." Among these, the spirit of service is making customers treat TSMC as their own factory, which is extremely difficult. However, the reason TSMC can do this traces back to 2011, when Apple had most of its orders still reliant on Samsung. But given the competitive relationship between the two as phone brands, having Apple entrust chips to Samsung for manufacturing always left concerns. That's when TSMC dispatched nearly a hundred engineers, forming a "One Team" R&D unit, stationed at Apple's headquarters in the United States. Each person had to sign a non-disclosure agreement before departure.
Based on past cooperation experiences, it generally takes only one to one and a half years from negotiations to formal orders to mass production. However, TSMC took two years to win Apple's order. This secret team first helped Apple solve design problems with the A6 processor, then had Apple verify intellectual property rights to avoid mutual patent lawsuits. This meticulous service led Apple to decide to abandon Samsung and place orders with TSMC. This also propelled TSMC to win AMD's order in 2018.
Que You-shang also states in this book that TSMC's stock price is "high yet not expensive." Zhang Zhongmou also once said "every day is a good time to enter TSMC." Que You-shang believes TSMC is the type of stock you can buy and wait for it to drop, then add to your position.
TSMC's EPS rises every year. In 2021 Q1, earnings per share were 5.39 yuan. In 2013, the full-year earnings per share totaled only 7.26 yuan. Compared to the same period in 2020, 2021's first quarter revenue increased 16.7%, with after-tax net profit and earnings per share both increasing 19.4%. Compared to the previous quarter, 2021's first quarter revenue increased by 0.2%, while after-tax net profit decreased by 2.2%.
