Private investor with more than 10 years of experience investing in commodities and solid assets, mainly gold miners, 26 percent silver miners, royalty and streaming companies, pure exploration companies, as well as oil and gas and MLP producers. However, Berkshire Hathaway (BRKB), of the Oracle of Omaha, revealed on Friday that it bought a new stake in the main mining company Barrick Gold. I believe that the best path for investors is to maintain a long-term mindset (more than 1 year) and reinvest all dividends to automatically average the cost in dollars, because when gold finally takes a turn, Barrick's shares should rise dramatically. Third, Berkshire's investment in Barrick Gold represents a small fraction of the company's market capitalization and even of its stock portfolio.
This indicates that it could stay with the stocks during another gold bullish streak and increase profits. Despite his stance on gold, Buffett's decision to invest in Barrick Gold indicates that he considers it a better investment than cryptocurrencies. Warren Buffett himself may not have even made the call to buy the shares of Barrick Gold (perhaps he was one of its managers), but I think Berkshire's decision to sell the shares is a mistake. New York (CNN Business), Warren Buffett hates gold; he hasn't concealed his dislike for it as an investment.
The explanation for Buffett's aversion to gold and his enthusiasm for silver is due to his basic principles of value investing. Professional investors give two reasons for Berkshire's investment and divestment in Barrick Gold Corporation. Berkshire's original purchase of Barrick surprised many, as Buffett is known for his negative view of gold. I compared Barrick's valuation with that of Newmont Mining and that of its gold mining peers listed above, and I also compared it with two other sectors: public services and consumer commodities.
Now, the reason they prefer gold is because you can take gold anywhere, unlike stocks and real estate. If the recovery period is prolonged, gold performs better than stocks, but if not, obviously, the stock market will increase. When news broke about the coronavirus vaccine, the risk began to decrease, leading to a decline in gold prices and a decrease in the stock price of gold companies. While many investors may be considering virtual currency as a substitute for gold as a safe haven asset, Bitcoin has no tangible value.