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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 dumped the stock in its entirety, according to the latest 13F filing.
The move to sell Barrick Gold was made 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.
Berkshire’s original purchase of Barrick came as a surprise to many because Buffett is known for his negative opinion of gold.
In a Harvard speech in 1998, Buffett famously said that gold “has no use”.
“(Gold) is dug out of the ground in Africa or elsewhere. Then we melt it down, dig another hole, bury it again and pay people to stand around and guard it. It’s no use. Anyone “Looking from Mars would scratch their head,” he said.
Buffett’s summer purchase coincided with gold reaching new record highs of more than $ 2065 per ounce, and figures such as Max Keizer, host of the Keizer report, took the step of declaring Barrick a “sea change” .
Buffett-big knock; buying Barrick Gold is a big change
The importance can not be overestimated
He sees that central banks have lost control worldwide; they hit trillions and kill fiat money
The entire $ 100 trillion global funds have just turned upside down https://t.co/YbFlo1luRT
– Max Keizer (@maxkeiser) 14 August 2020
And the Q4 decision to sell Barrick is in line with other companies adorning their gold positions, as the precious metal is stuck in a downward trend and trades below $ 1,800 per ounce.
So Buffett marked the top in Barrick when he was bought. Now he’s sold out, maybe he’s mark the bottom.
– Mike Barnes aka Cashcosts (@real_MikeBarnes) 18 February 2021
In Q2 2020 Buffett (of $ BRK.B / $ BRK.A) bought a very small 0.15% position in Barrick Gold ($ GOLD) between $ 18.50 and $ 28.25.
He sold ~ 43% of the position between ~ $ 26 and ~ $ 30.50 last quarter and the rest this quarter at prices between ~ $ 22 and ~ $ 29.
Why?
– Tobias Carlisle (@Greenbackd) 17 February 2021
Another 13F filing by BlackRock revealed that the world’s largest asset manager sold more than $ 470 million worth of SPDR Gold Shares (GLD) and bought iShares Silver Trust (SLV) for $ 29 million.
Barrick Gold was not the only stock Berkshire Hathaway sold in its entirety. The company also fully abandoned its positions in Pfizer, JPMorgan Chase, M&T Bank and PNC Financial. In addition, he acquired his stake in Wells Fargo & Co. reduced by 59%.
The company also shrank its stake in Apple Inc. by 6% and Verizon Communications Inc. share, insurance broker Marsh & McLennan Cos. And Chevron Corp.
Disclaimer: The views expressed in this article are those of the author and may not reflect the views expressed Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, not Kitco Metals Inc. or the author cannot guarantee such accuracy. This article is for informational purposes only. It is not a request to trade in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article does not accept the blame for losses and / or damages arising from the use of this publication.