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Berkshire Hathaway buys into Barrick Gold

MaraMan
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Berkshire Hathaway buys into Barrick Gold

#333401

Postby MaraMan » August 15th, 2020, 11:59 am

I was surprised to hear last night that Buffett has bought a significant stake in Barrick Gold and ditched sizable holdings in Goldman Sacks, Wells Fargo etc. It seems he doesn't have a lot of faith in the US economy, or at least less than he used to have.

MM

https://www.bloomberg.com/news/articles ... lion-miner

SalvorHardin
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Re: Berkshire Hathaway buys into Barrick Gold

#333407

Postby SalvorHardin » August 15th, 2020, 12:26 pm

MaraMan wrote:I was surprised to hear last night that Buffett has bought a significant stake in Barrick Gold and ditched sizable holdings in Goldman Sacks, Wells Fargo etc. It seems he doesn't have a lot of faith in the US economy, or at least less than he used to have.

It isn't necessarily a Warren Buffett purchase. The smaller purchases made by Berkshire Hathaway tend to be made by Todd Combs or Ted Weschler, both of whom invest money for Berkshire separately from Buffett. Todd and Ted have a lot of a leeway in how they run their portfolios.

Todd and Ted each run a small portfolio of something like $15 billion (small by Berkshire standards; Berkshire's Apple shareholding on its own is currently worth $112 billion). The Barrick Gold purchase looks more like one of theirs. This happens regularly; Berkshire makes a small investment, the media gets excited that "Buffett is buying" and soon afterwards it emerges that it was Todd and/or Ted who did it. That's what happened when Berkshire bought Amazon last year.

The sale of Wells Fargo isn't a surprise to those of us who follow Berkshire. Wells Fargo badly screwed up (to put it mildly) when it emerged that from 2011 to 2016 it had been pushing staff to fraudulently open accounts for customers in order to charge fees. Berkshire couldn't just dump its shareholding in Wells Fargo, because it was so large, so Buffett has been gradually selling it.

https://en.wikipedia.org/wiki/Wells_Fargo_account_fraud_scandal

Buffett hasn't given up on America. Berkshire recently bought a lot of Bank of America shares, increasing its state to 11.5%.

johnhemming
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Re: Berkshire Hathaway buys into Barrick Gold

#333408

Postby johnhemming » August 15th, 2020, 12:31 pm

They have a problem of size. However it is not surprising that they have bought into a gold miner. It may not be a long term investment, but I think it is good in the short to medium term. I have gone for PAF.

MaraMan
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Re: Berkshire Hathaway buys into Barrick Gold

#333450

Postby MaraMan » August 15th, 2020, 4:08 pm

It has been reported that he feels the US is set for a period of "stagflation" and so I guess getting into gold makes sense, despite his prior reluctance to do so. He's not known for short term investments.

I wonder what the US markets reaction will be to Biden winning the election? Assuming he does, which is dangerous. I would guess that it is priced in at this point, which is encouraging.

MM

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Re: Berkshire Hathaway buys into Barrick Gold

#333456

Postby Dod101 » August 15th, 2020, 4:53 pm

MaraMan wrote:It has been reported that he feels the US is set for a period of "stagflation" and so I guess getting into gold makes sense, despite his prior reluctance to do so. He's not known for short term investments.

I wonder what the US markets reaction will be to Biden winning the election? Assuming he does, which is dangerous. I would guess that it is priced in at this point, which is encouraging.

MM


I assume you mean that assuming Biden wins the election is dangerous; the man himself looks less dangerous than Trump.

Dod

MaraMan
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Re: Berkshire Hathaway buys into Barrick Gold

#333463

Postby MaraMan » August 15th, 2020, 5:44 pm

Dod101 wrote:
I assume you mean that assuming Biden wins the election is dangerous; the man himself looks less dangerous than Trump.

Dod


Yes sorry Dod, I meant its dangerous making the assumption that Biden wins, but I pray that he does.....

MM


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