The Intrinsic Value Podcast - The Investor’s Podcast Network cover image

MI267: Investing In Chip Companies: Deep Dive Into QCOM, TSM, TXN, AMD, NVDA w/ Nicholas Rossolillo

The Intrinsic Value Podcast - The Investor’s Podcast Network

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The Importance of Capital Intensity in a Business

Charlie Munger said he hates businesses like TSMC. To stay ahead of your competitors, you're constantly having to take your profits and reinvest them in developing new technology. The machines needed to manufacture chips are tens of millions if not hundreds of millions of bucks a pop. So TSM is absolutely wonderful business but I think a lot of investors should really understand that level of capital intensity needed for the company to remain a wonderful business.

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