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(Kitco News) After making a lot of noise this summer with the purchase of Barrick Gold (NYSE: GOLD), Warren Buffett’s Berkshire Hathaway abandoned the shares in full, according to the latest 13F presentation.
The move to sell Barrick Gold took place in the fourth quarter after buying just under 21 million shares in the second quarter of 2020. Berkshire Hathaway sold part of its Barrick position in the third quarter.
Barrick’s original purchase from Berkshire came as a surprise to many, as Buffett is known for his negative opinion of gold.
In a 1998 Harvard speech, Buffett famously said that gold “has no use.”
“(Gold) is extracted from the ground in Africa or somewhere. Then we melt it, dig another hole, bury it again and pay the people who keep it. It’s useless. Anyone who looks at it. from Mars he would be scratching his head, “he said.
Buffett’s summer purchase coincided with gold reaching new record highs above $ 2,065 an ounce and figures such as Max Keizer, host of the Keizer report, who proclaimed the move to buy Barrick as a “change maritime “.
Buffett dumping banks; buying Barrick Gold is a maritime change
The importance cannot be overstated
He sees that the world central banks have completely lost control; they are printing billions and killing fiat money
The whole global business of 100 billion dollars of global resources has just ignited https://t.co/YbFlo1luRT
– Max Keizer (@maxkeiser) August 14, 2020
And the fourth-quarter decision to sell Barrick is in line with other companies lowering their gold positions, as the precious metal is on a downward trend, trading below $ 1,800 an ounce.
So Buffett scored the top for Barrick when he bought. Now it’s sold out, maybe it marks the bottom.
– Mike Barnes aka Cashcosts (@real_MikeBarnes) February 18, 2021
In the second quarter of 2020 Buffett (or $ BRK.B / $ BRK.A) bought a very small 0.15% position in Barrick Gold ($ GOLD) between $ 18.50 and $ 28.25.
It sold ~ 43% of the position last quarter between ~ $ 26 and ~ $ 30.50 and the rest this quarter priced between ~ $ 22 and ~ $ 29.
Because?
– Tobias Carlisle (@Greenbackd) February 17, 2021
Another BlackRock 13F application revealed that the world’s largest asset manager sold SPDR Gold (GLD) shares worth more than $ 470 million and bought iShares Silver Trust (SLV) worth $ 29 million.
Barrick Gold was not the only stock that Berkshire Hathaway sold in its entirety. The company also completely abandoned its positions in Pfizer, JPMorgan Chase, M&T Bank and PNC Financial. In addition, it reduced its stake in Wells Fargo & Co. in 59%.
The company also reduced its stake in Apple Inc. by 6% and bought shares of Verizon Communications Inc., the insurance broker Marsh & McLennan Cos. I Chevron Corp.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor can the author guarantee this accuracy. This article is for informational purposes only. This is not a request for any exchange of goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article does not accept guilt for loss and / or damage resulting from the use of this publication.