TSMC: Unprecedented Growth Outlook For A Company Of This Scale

Core Insights - Taiwan Semiconductor Manufacturing Company Limited (TSMC) has outperformed the market since the last update, indicating strong performance and potential for continued growth [1] Company Analysis - TSMC is managed by an independent investor who focuses on generating alpha through a generalist investment approach, analyzing various sectors with perceived alpha potential against the S&P 500 [1] - The typical holding period for investments in TSMC ranges from a few quarters to multiple years, suggesting a long-term investment strategy [1] - The research methodology includes maintaining comprehensive spreadsheets with historical financial data, key metrics, guidance trends, and performance indicators, which aids in assessing TSMC's performance [1] Investment Strategy - The analysis emphasizes the importance of evaluating TSMC's delivery on key drivers of valuation, including revenues, costs and margins, cash flow conversion, capital expenditures, and interest rates, rather than relying heavily on discounted cash flow (DCF) projections [1] - The investor has a beneficial long position in TSMC shares, indicating confidence in the company's future performance [1]