Taiwan Semiconductor Manufacturing (NYSE: TSM) is an incredible company and one of the most important businesses on the planet. The majority of the world's most advanced microchips for smartphones, PCs, and data centers are made by TSM. Thus, it came as only a slight surprise that Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) broke with a longtime aversion to technology companies and bought a significant stake in TSM in the third quarter of 2022.

However, it took all of about three months for Buffett and his team to reverse course and promptly sell off most of that brand-new TSM investment. This was no quick and profitable trade, though. On the contrary, the buying took place during the third quarter of 2022, when the average TSM share price was higher than in the fourth quarter. There's a good chance Berkshire Hathaway logged a loss on the short-term flip in this top semiconductor stock.

Why in the world would Buffett do that? The answer to that question provides a lesson for all investors.

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Source Fool.com