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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 divested the shares in full, according to the latest 13F lawsuit.
The move to sell Barrick Gold was made in the fourth quarter after the purchase of just under 21 million shares in the second quarter of 2020. Berkshire Hathaway sold part of its position in Barrick in the third quarter.
The original purchase of Barrick by Berkshire was a surprise to many, as Buffett is known for his negative opinion of gold.
In a 1998 speech at Harvard, Buffett said gold “is of no use”.
“(Gold) is dug out of the ground in Africa, or somewhere. Then we melt it, dig another hole, bury it again and pay people to stay close by, protecting it. It is of no use. Mars would be scratching their heads, “he said.
Buffett’s summer purchase coincided with gold reaching new records of over $ 2,065 an ounce and numbers like Max Keizer, presenter of the Keizer Report, proclaiming the decision to buy Barrick as a “radical change”.
Buffett’s dumping banks; buying Barrick Gold is a radical change
The importance cannot be overstated
He sees that global central banks have completely lost control; they are printing trillions and killing fiat money
The entire $ 100 trillion global funds business just turned upside down https://t.co/YbFlo1luRT
– Max Keizer (@maxkeiser) August 14, 2020
And the fourth-quarter decision to sell Barrick is in line with other companies that are reducing their gold positions, as the precious metal is stuck in a downward trend, trading below $ 1,800 an ounce.
Buffett marked the top of Barrick when it was bought. Now that he’s exhausted, maybe he’s in the background.
– Mike Barnes, also known as 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 in the last quarter between ~ $ 26 and ~ $ 30.50 and the rest this quarter at prices between ~ $ 22 and ~ $ 29.
Why?
– Tobias Carlisle (@Greenbackd) February 17, 2021
Another BlackRock 13F lawsuit revealed that the world’s largest asset manager sold more than $ 470 million in SPDR Gold (GLD) shares and bought $ 29 million in iShares Silver Trust (SLV).
Barrick Gold was not the only Berkshire Hathaway share sold in its entirety. The company also completely abandoned its positions in Pfizer, JPMorgan Chase, M&T Bank and PNC Financial. In addition, it cut its stake in Wells Fargo & Co. by 59%.
The company also reduced Apple Inc’s stake by 6% and bought shares in Verizon Communications Inc., of insurance broker Marsh & McLennan Cos. And from Chevron Corp.
Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes. It is not a request to make any exchange of goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article are not responsible for losses and / or damages arising from the use of this publication.