Amazing: The reactions to Warren Buffett’s Berkshire Hathaway joining Barrick Gold are very different. On one side are the gold investors cheering Buffett suddenly discovering the gold mining stocks. On the other hand, there are the eternal skeptics who point out how small the position is and that it may not have been Buffett himself who bought a position that is currently around half a billion dollars. But that’s not the point. One can confidently wonder whether Berkshire Hathaway is still holding this position, which it built up in the second quarter, and to this extent.
Perhaps Berkshire has already reduced the position. Maybe also bought in. Investors won’t find out about all of this until the third quarter report comes out in November. One can also speculate whether it was Warren Buffett himself who jumped over his own shadow and bought Barrick gold or one of his confidants. It is also right to point out that Barrick Gold makes up less than 0.5 percent of Berkshire’s portfolio – whereas Apple accounts for 44 percent. But that’s not the point. It’s about the signal effect, the media echo. And even the eternal doubters, those who consider gold to be a relic of a bygone era, suddenly have to deal with the subject. Even if it’s just to try to make the world understand that it’s actually not an issue.