Buffett’s company bought $ 565 million worth of Barrick Gold stock. The total market value of the miner is $ 48 billion. Valuation is closely related to this year’s sharp increase in interest in gold in connection with the crisis due to the fight against coronavirus.
This year, Barrick showed an even greater appreciation than the price of gold itself. While the company’s shares strengthened by 45 percent, the value of the precious metal is about 15 percentage points less.
Buffett himself is known for his restrained approach to gold. It does not consider it an investment in the classical sense, because the precious metal itself does not generate any profit. She is even more critical of the cryptocurrency bitcoin, which, according to her proponents, is a digital equivalent of gold. In the past, Buffett likened it to rat poison.
Berkshire Hathaway, on the other hand, completely divested its stake in Goldman Sachs during the second quarter. It sold the remaining 1.9 million shares. Their current market value would be less than $ 400 million. Buffett’s company no longer holds shares in Restaurant Brands International, which also owns the Burger King fast food chain, according to the Fortune website.
In the first quarter, Buffett also got rid of its shares in airlines, even at the cost of heavy losses. At the end of last year, Berkshire owned approximately one-tenth of the shares in Delta Air Lines, American Airlines, Southwest Airlines and United Airlines.
The Berkshire Hathaway Group controls more than 90 subsidiaries operating in a variety of industries.
It also owns significant stakes in a number of well-known companies, such as the world’s largest soft drink producer Coca-Cola. Buffett is one of the richest people in the world and thanks to his successful investments he earned the nickname The Fortune Teller of Omaha.
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