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Barrick Gold Mining
Image of Ullstein | Getty Images
Barrick Gold stock jumped more than 7% in pre-market trading on Monday after legendary investor Warren Buffett’s Berkshire Hathaway revealed a stake in the gold miner’s stock.
Buffett’s Berkshire Hathaway added a $ 562 million position in Barrick Gold in the second quarter, SEC filings revealed Friday. While the position is weak for Berkshire – which owns more than $ 89 billion in Apple shares – the conglomerate is the 11th largest shareholder in the gold mining company, according to FacSet.
This was an unusual move given that longtime investor Buffett has long professed an aversion to gold, preferring assets that have cash flow or pay dividends.
Miners’ shares have jumped more than 45% this year as investors rush into safe haven metal trading during the coronavirus pandemic. Gold prices had a record year, surpassing the $ 2,000 level for the first time earlier this month amid concerns over the impact of Covid-19 on the economy and falling bond yields . Spot gold rose almost 30% in 2020, making it one of the best performing consumer assets this year.
Barrick Gold has gold and copper mining operations in 13 countries around the world. The company’s shares trade on the New York Stock Exchange under the symbol GOLD.
Of course, given that Berkshire Hathaway’s position in Barrick Gold is relatively small, one of Buffett’s investor lieutenants, Ted Weschler or Todd Combs, could be responsible for the purchase.
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