SPC Premium Dossier: Meet the “Toll Bridge” to the AI Revolution

When China’s military crossed the Taiwan Strait and “encircled” Taiwan as part of a two-day drill in May 2024, handicappers were at it again – wagering if (and/or when) Beijing would order a real assault on that island nation just 100 nautical miles away.

This debate has been going on for years – since even before I started my career as a reporter 40 years ago.

Indeed, we’re talking about a powder keg whose long fuse was lit long ago – back when the Chinese Civil War ended in 1949, and the Chinese Communist Party (CCP) victor assumed power on the mainland. The defeated Nationalist Party retreated to Taiwan, creating the Republic of China (ROC) and crowned Taipei its capital.

Despite the ROC’s ongoing claim of independence, Beijing views this all as one country – experts refer to it as the “One China Principle” – which means the CCP views Taiwan as “lost territory.”

That’s created dicey scenarios – along a number of fronts, including:

• Diplomatically: Through the years, Western governments have increasingly distanced themselves from Taipei, though Washington has traveled the other way – albeit unofficially – while protecting its strategic interests in what the Council on Foreign Relations (CFR) refers to as the “most economically consequential region” in the world.

• Militarily: Beijing has vowed to reunify the two, has militarized the South China Sea, has built “standoff weapons” like “carrier killer” hypersonic missiles, and has grown ever more aggressive with its “drills” and combat-airplane flights into Taiwan’s air defense identification zone (ADIZ).

• And Technologically: Taiwan accounts for as much as 65% of the world’s semiconductor production (see chart).

And it’s that last scenario — the military one — we’re focusing on here.

As you know, we believe in that “if you find the best storylines, you’ll find the best stocks.” And we also believe that when you find the “intersection points” of multiple powerful storylines, you’ll find the truly best stocks.

Here we’re talking about the intersection of the New Cold War, Deglobalization, the Resurgence of America and the AI Revolution.

And it truly has spotlighted one of the truly best stocks.

In fact, all those intersecting forces has imbued one company with a special power … a higher power … a superpower.

It has positioned this company as a “toll bridge” for the West’s New Cold War muscle … for the reversal of years of globalization … the rebirth of America as a truly great economy … and the AI Revolution, the biggest Wealth play of our lifetimes.

And just like Warren Buffett … we love owning toll bridges.

So let me tell you all about one … and why we want to own it.

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