Barrick Gold mining
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Barrick Gold shares rose more than 7% in trading on Monday after legendary investor Warren Buffett’s Berkshire Hathaway revealed a stake in the gold miner.
Buffett’s Berkshire Hathaway added a $ 562 million position in Barrick Gold in the second quarter, SEC filings showed Friday. While the position is small for Berkshire – which has more than $ 89 billion in Apple stock – the conglomerate is the 11th largest shareholder in the gold mining company, according to FacSet.
This was an unusual move, given the long-term value investor Buffett has long acknowledged a dislike for gold, and preferred assets that have cash flows or pay dividends.
Shares of miners have risen more than 45% this year as investors trade in safe haven metal during the coronavirus pandemic. Gold prices hit a banner year, above the $ 2,000 level for the first time ever earlier this month on concerns about Covid-19’s impact on the economy and lower bond yields. Spot gold has grown by almost 30% in 2020, making it one of the best performing mainstream assets this year.
Barrick Gold has gold and copper mining operations in 13 countries around the world. The company’s shares are traded on the New York Stock Exchange under ticker GOLD.
To be sure, because Berkshire Hathaway’s position in Barrick Gold is relatively small, one of Buffett’s investing lieutenants, Ted Weschler or Todd Combs, could be responsible for the purchase.
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