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Berkshire Makes a Bet on Gold Market That Buffett Once Mocked

johnNjohnN
edited August 2020 in Other Investing
https://finance.yahoo.com/amphtml/news/berkshire-makes-bet-gold-market-213804384.html

Berkshire Makes a Bet on Gold Market That Buffett Once Mocked
Justina Vasquez
August 14, 2020, 4:38 pm

(Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. added Barrick Gold Corp. to its portfolio in the second quarter, sending shares of the world’s second-largest miner of the metal surging.


Warren getting the gold bugs itch...he maybe more than half late to partee

Comments

  • MikeMMikeM
    John, you are assuming Buffet made the call to buy Barrick. Plus the end if the 1st, start of the 2nd quarter is when gold took off. No way to tell when they bought. May not have been "half late to the party" as you put it.

    from the article:
    The filing shows moves made by Buffett or his two investing deputies, Todd Combs or Ted Weschler.
  • Gary
    edited August 2020
    .
  • Sven
    The buy information is most likely dated by several months. Buying gold instead of stocks could imply he sees little upside in the near future. Airline stocks he sold continue to fall.
  • hank
    edited August 2020
    “Warren Buffett’s Berkshire Hathaway Inc. added Barrick Gold Corp. to its portfolio in the second quarter, sending shares of the world’s second-largest miner of the metal surging.”

    According to the above excerpt from John’s article, the purchase was sometime in the second quarter (April-June). Not necessarily all at one time. Might have caused an upward tic in Barrack at the time. More likely, the real impact will be on the retail investor crowd (you and me) now that the purchase was disclosed. I dunno. I can see a big run-up towards the election. But the big players can “pull the plug” anytime and send prices reeling - at least for shorter periods as they did recently.

    Folks will recall the March 7-15 period where gold and miners fell through the floorboards dropping 20% or more in a few days. I’m not sure when the recovery in (gold and miners) price started, but would guess sometime late in the first quarter (before WB apparently bought in). Note that he bought Barrick mining - not bullion - big difference.

    BTW - miners up 5% today at last look.
  • JoJo26
    Also, do you know it was Warren that made this decision? Could it have been Weschler or Combs?
  • Sven
    It is less critical who made the final decision since they are working as a team now. I suspect many decision came from his team, i.e. Apple.

    If he initiated his buys in April. Timing is good and should have gained over 20%.
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