Barrick Gold’s stock soars after Buffett’s Berkshire reveals stake

Barrick Gold mining

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Barrick Gold‘s stock popped 10.5% on Monday after legendary investor Warren Buffett’s Berkshire Hathaway revealed a stake in the gold miner’s stock. 

Berkshire added a $562 million position in Barrick Gold in the second quarter, according to SEC filings Friday. While the position is small for Berkshire — which owns more than $89 billion in Apple stock — the conglomerate is the 11th largest shareholder of the gold mining company, according to FactSet. 

This was an unusual move considering Buffett, a long-time value investor, has long professed a dislike for gold, preferring assets that have cash flows or pay dividends. 

Shares of miner have surged more than 64% this year as investors rush into the safe haven metal trade during the coronavirus pandemic. Gold prices have had a banner year, topping $2,000 per ounce this month for the first time ever on worries about the impact of Covid-19 on the economy and lower bond yields. Spot gold has rallied nearly 30% in 2020, making it one of the the best-performing mainstream assets this year. 

Barrick Gold has gold and copper mining operations in 13 countries. Its shares trade 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 rather than the Oracle of Omaha.

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