Posted on 08/18/2020 8:45:37 AM PDT by Red Badger
Warren Buffett has given up his long-held conviction against buying gold — and he’s meanwhile getting out of Goldman Sachs.
The totemic tycoon revealed in filings late last week that he has scooped up more than 20 million shares of mining giant Barrick Gold Corp. even as he unloaded nearly all of his nearly 2 million shares in Goldman Sachs.
The 89-year-old investing icon’s sudden embrace of the precious yellow metal — which has has previously derided as “useless,” saying that “anyone watching from Mars would be scratching their head” at the idea of investing in it — took many on Wall Street by surprise.
But it’s what the Oracle of Omaha did with his other bank stocks that have top analysts talking. In addition to dumping Goldman, Buffett cut his position in JPMorgan Chase by more than 61 percent and sold off more than a quarter of his remaining stake in Wells Fargo.
At the same time, Buffett didn’t touch his 245 million shares in Bank of America, which he has lately beefed up in stock purchases that have left him holding roughly 12 percent of the company.
“Bank of America is a franchise that can be held for the next 100 years,” Wells Fargo analyst Mike Mayo told The Post. “Goldman is in the middle of a revamping from Wall Street to Main Street, and the jury on that will remain out for a while.”
(Excerpt) Read more at nypost.com ...
Why does that not confuse me?
Buffet thinks Biden will win. This is the only reason I can see for this play and what does it say about his expectations for a Biden presidency?
The ‘Oracle of Omaha’ must know something is coming and it ain’t good..............
We’re on the verge of an inflation based great depression (2021). PM’s are one great hedge in such a time.
Yes. But he’s mistaken......................
I honestly don’t think it matters who wins. Trump isn’t God, and our situation is way past a human solution.
The ‘Oracle of Omaha’ must know something is coming and it ain’t good...
Before the virus hit I was hoping that the big collapse would come AFTER the election. But what’s happened this year will not only ensure the collapse, but make it far more serious than I imagined.
Regarding our response to the virus, we are the guy that jumped off a 100 story building and he’s just now passing the 10th floor, and yells into an open window, “so far, so good”.
I figure we hit the pavement in 2021. And we will pine for the salad days of the 1930’s.
“The totemic tycoon revealed in filings late last week that he has scooped up more than 20 million shares of mining giant Barrick Gold Corp.”
So he didn’t actually buy gold, but a large gold miner - plus he probably did this months ago before the run up (inside info for sure) and just reported it
> Buffet thinks Biden will win. <
Interesting take!
If Biden wins, the government printing presses will run day and night. “Hey Chicago, you need a bailout? Well, sure. Coming right up.”
That would cause massive inflation. And then you’d want to be in gold.
(Does that scenario of mine make sense?)
Heh, and when the mega inflation hits and the socialist Democrat gubmit tries to take our gold this time, the “leaders” will NOT be safe in their homes.
Or anywhere else.
Exactly.
Bought a bunch of Barrick, if memory serves. What it means is, he keeps hearing the tip of the scythe as the Grim Reaper keeps knocking on his doors.
Turkeys citizen are buying gold, in the face of the demise of the lira.
The men who place billion-dollar bets know that hard times are coming. I ain’t got billions, but I got land, a house I built, water, food, guns, ammo, livestock, gardens, and tools. And tribe.
l8r
We’ll need to worry when he buys Carlsbad Caverns and starts investing in pallet loads of Ensure.
He never intended to buy Goldman. He got it as part of the 2008 bailout deal. He lent them 5 Billion in cash and he got warrants that let him buy their stock at the then very low price. His gold purchase is a gold mine. Its an international miner. So he is moving money into a commodity producer out side the US. This is not just buying gold. While gold miners do tend to follow gold they are not in lock step with gold. I am assuming he sold Wells Fargo and Goldman to offset profits and loses. It also allows him to lower his huge US banking investment. Berkshire’s two largest holdings are Banking and Insurance. Berkshire has taken a very large it in both.
Yep. Seems like nobody’s talking inflation. Unless you’re talking to people who just left the grocery store.
Higher prices, smaller portions.
You can’t just print trillions upon trillions without inflation.
This will hurt the poor, the elderly, the pensioners, any fixed-income folks.
Illiquid investments (homes, 401ks, etc.) will provide some cushions. And of course, large debtholders will benefit the most - paying yesterday’s debts with tomorrow’s dollars.
There is so much governmental manipulation, these effects may be masked for a while. But one can defy gravity for only so long.
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