Warren Buffet’s Berkshire Hathaway Inc. added Barrick Gold Corporation to its portfolio. This was done in the second quarter and this move by the company made the shares of the world’s second-largest miner of the metal surging.
According to a regulatory filing on Friday (14.08.2020), Berkshire Hathaway Inc. took a new position in the Barrick Gold Corporation. The company bought 20.9 million shares or 1.2 per cent of the outstanding stock of the company; the current market value was $565 billion. The filing showed the moves made by Warren Buffet and his 2 investing deputies – Todd Combs and Ted Weschler.
Earlier, Warren Buffet has cautioned against investing in the metal as it is not productive. Now gold miners benefit from rising bullion prices that boost profit margins as production costs have steadied, making them more attractive investments. Large miners like Barrick and Newmont Corporation. hoped to woo back generalists who had fled the sector years ago.
Paulson & Co., run by multimillionaire hedge fund manager John Paulson, has also added to its Barrick holdings. The shares of Barrick rose 7.4 percent at 5:32 p.m. In New York post-hours trading. The gold price jump has strengthened the ability of investors to inject billions into the industry, with miners of precious metals raising secondary equity offers of $2.4 billion over the second quarter. Gold has gained a boost as interest-rate cuts in the Federal Reserve and a plunge into real government bond yields elevated metal demand, which offers no interest.
In the past, Buffett may have been averse to gold, but he has previously bet big on metals. He bought 129.7 million ounces of silver in 1997, banking on demand which surpassed production and re-use. He bought most of it for less than $6 an ounce and soon afterwards sold it, nine years later, he said. Buffest said, “For a while, I was the silver king over there”.Filings released this August do not include the current position of hedge funds, which could have changed since quarter-end. Money managers overseeing more than $100 million in the U.S. must submit a Form 13F within 45 days of the end of each quarter to list those stocks and options and convertible bonds. The filings show no non-U.S. Securities, holdings that are not traded publicly, or cash.
Bloomberg Said, now gold miners benefit from rising bullion prices that boost profit margins as production costs have steadied, making them more attractive investments. Large miners including Newmont and Barrick hoped to woo back generalists who had fled the sector years ago.
