Giverny Capital’s model portfolio underperformed the S&P 500 in Q2 2026 despite strong gains in Taiwan Semiconductor Manufacturing Company shares.
Taiwan Semiconductor Manufacturing Company (TSM) shares doubled since Giverny Capital Asset Management included the stock in its portfolio for Q2 2026. The firm’s model portfolio returned 13.70% for the quarter, trailing the S&P 500’s 15.20% gain.
Year-to-date, Giverny’s portfolio rose 5.89%, compared to the S&P 500’s 10.21% increase. The firm noted that 210 stocks in the index declined despite the broader market’s 10.2% first-half rally, highlighting market concentration in high-momentum tech stocks.
Giverny emphasized the long-term link between earnings growth and stock appreciation, citing AI-driven demand as a key driver for semiconductor firms like TSM. The firm also warned of sustainability risks amid speculative investments in emerging tech.