Value investor Monshi Fabri said selling SK Hynix and other semiconductor stocks was a painful mistake during a recent interview.
Fabri, often described as a disciple of Warren Buffett, argues that these companies are essential infrastructure for the current technology cycle. His reversal serves as a warning to other investors who might be tempted to take short-term profits from the chip sector.
During an interview on the YouTube channel “지식인사이드” on June 22 [1], Fabri said he broke his own principles by selling a company that he should have held forever. He characterized the current state of the semiconductor industry as a gold rush, describing the leading chipmakers as the providers of the most reliable "pickaxes" for that rush [1].
Fabri said that if investors already own companies providing these essential tools, they should never sell them [1]. He noted that the semiconductor boom is only in its beginning stages [1].
According to Fabri, the global market is now dominated by a "big-3" consisting of Samsung, SK Hynix, and Micron [1]. He said this concentration of power makes it a poor decision to exit positions in these firms.
While optimistic about the semiconductor sector, Fabri expressed separate concerns regarding the broader South Korean economy. He cited the country's demographic decline as a significant risk factor for long-term economic stability [1].
“The semiconductor boom is just beginning”
Fabri's shift in perspective highlights the strategic importance of the 'Big 3' semiconductor firms in an AI-driven economy. By framing these companies as 'pickaxe' providers, he suggests that the infrastructure of the chip industry is a more stable long-term bet than the volatile companies attempting to use those chips to create new applications.
