Berkshire Hathaway Buys Barrick Gold Shares

[Ron Resnick]

"Meanwhile, Berkshire added a bet in gold miner Barrick Gold in the second quarter, worth about $562 million. This was an unusual move considering Buffett has long professed a dislike for gold, preferring assets that have cash flows."

CNBC (August 14, 2020)

 

[jazdoc]

That’s a rounding error when compared to Berkshire’s $3/4 Trillion balance sheet

 

[DeadWax]

Rounding error or not it's more significantly viewed in the context of Buffett's overall Q2 portfolio re-shuffling and what it says about his vision for the markets and economy as we head into 2021. He fully unwinds his position in Goldman Sachs, substantially reduced his exposure to banking, sold all remaining 19MM shares of Occidental…while buying 21MM shares of a gold mining company and increasing his stake in Kroger supermarkets. Smells like hunker down mode anticipating zero deal flow and economic growth into 2021+.

 

[Ron Resnick]

I think both of you are correct.

GOLD is a tiny fraction of the Berkshire portfolio. (I think I read .3% of NAV.)

But selling banks and buying a gold stock definitely reflects a change of tune.

 

[tima]

Smells like hunker down mode anticipating zero deal flow and economic growth into 2021+.

Don't know if I'm allowed to say this: could it be a bet on the outcome of the US election?

 

[andromedaaudio]

Berkshire has 140 billion in cash .
I think he thinks the big one( drop in stocks) is yet to come , could indeed be around the election .
Often the big plunges happen in sept /okt.
The fed will try to notl let that happen , they already made clear they are prepared to buy stocks indirectly.
More money printing good for gold / gold stocks .
I m loaded in gold stocks since 2018 , this year is my last year, next year im retired whatever that might be.
I might go full in the loudspeaker business lol

I think I told Ron back then why I bought gold stocks and not the metal

 

[andromedaaudio]

Almost 10 % pre market , many investors follow what he does
My other goldstocks are plus 3 - 4 today .
But you gotta have strong stomach they are extremely volatile