Many say that Warren Buffet is the Lionel Messi of the investing world.
Berkshire Hathaway’s most recent filing caught the attention of investors because they revealed a $565 million investment in Barrick Gold, a mining company.
Ordinarily, this might not be such a big deal. But Buffet has historically been a fierce critic of gold.
What do you think of Buffet’s latest investing behaviours?
Did he get out of airlines at the right time?
Is BH holding too much cash?
Will his big bet on gold pay off?
This should not be read as personal investment advice and individual investors should make their own decisions or seek independent advice. When you invest, your capital is at risk.
His main issue with gold is that it just sits there not paying dividends and not producing anything. The same might not apply to a well run mining company.
(Disclaimer; I’ve done no research on Barrick and have no idea if it’s a well run mining company)
Buffett likes companies with a decent balance sheet, a defendable position, good looking future earning expectations, etc. Dumping the banks and buying into Barrick would appear to tick these boxes and so this this just looks like him following his own rules. Makes sense to me.
