Barrick Gold stock price soars after Warren Buffett's buys a stake?

Has Buffett bought gold? Buffett has not changed. Buffett does not want to hold physical gold, but he has never said that he will not buy shares in gold mining companies.

Looking at the entire market, there are not many stocks that fit Buffett's trading. And Barrick Gold Company is just one of them. Buffett bought nearly 21 million shares, and the current share value is $563 million.

We now look at the underlying logic of Buffett's purchase of Barrick Gold stock.

Compared with physical gold ETFs, gold mining companies can respond positively to market conditions. There are financial reports to analyze, With dividends and stock repurchase plans, gold mining companies have the right to reward shareholders through capital return plans.

In contrast, the physical gold ETF has no gains.

The market generally believes that it is still in the upward cycle of gold prices. The current international environment is one where black swans emerge one after another. While paying attention to the gold market, we must also keep an eye on changes in international politics, economy, and finance. As the US election approaches, unexpected news will increase. Based on experience, every three weeks, there will be a large-scale friction event in the United States or related countries, which will help the gold bull market.

Due to the strong demand for gold as a currency hedging tool, it is a reasonable phenomenon that gold prices are supported. Due to the epidemic, there will likely be a decline in the middle, or even for some time, but it is unlikely to fall sharply.

This upward cycle will create a favorable business environment for gold producers. According to the existing market conditions, gold producers can put new mines into use, or temporarily not use them, control costs, and the operability is very flexible. The management of most gold mining companies is still relatively conservative on large-scale capital expenditures.

This not only brought record-breaking profit margins, but also set free cash flow expectations to a new high, and is expected to further encourage companies to significantly increase shareholder dividends.

Barrick Gold Target Value

Barrick Gold Revenue

Barrick Gold Business

This is very much in line with Buffett's stock selection philosophy and is a wise move by Buffett under the premise of uncertainties and uncertainties in today's market environment. Of course, we also saw that Buffett only used a very small position area for investment. And I think

This investment will not be Buffett's long-term investment. As gold mining stocks are affected by the cycle, their trend will suddenly reverse. Therefore, Buffett sold bank stocks, that is, because of the current market environment, various uncertainties surrounding the US election, and the confrontation between China and the US, and thus began to reduce investment in financial stocks.

With the purchase of a large number of shares of Barrick Gold this time, it is obvious that Barrick Gold will bring him huge returns. The stock will reflect the value of gold for most of 2020. The stock has grown 45% so far this year. After Berkshire’s investment, the stock has risen 8.11% in after-hours trading.

Barrick Gold stock price chart

From the above analysis, it is easy to see that Buffett's attitude towards the price of gold is positive. This news has greatly encouraged the gold bull market. Many people naively think that Buffett's sunset is over. In fact, in the real world, the managers of global 100 trillion dollar fund management companies are all staring at Buffett. Currently, only about US$1 trillion is invested in gold, and investment in gold is less than 1%. As Buffett now invests in gold assets, the market expects that global capital allocation will increase significantly.

The positive sentiment surrounding gold means that Bitcoin's valuation will be pushed up. Because Bitcoin is considered digital gold, the price trend between gold and Bitcoin shows a certain correlation.

Since late March, since the global stock market crash, Bitcoin and gold have risen simultaneously. This shows that more and more investors are beginning to regard Bitcoin as a valuable asset, and I hold an open mind about Bitcoin. For Bitcoin, there is already a lot of controversy in the investment field. However, human society is always changing, some controversial emerging things, or will become mainstream things in the future, we should always pay attention to their development.

Comments

VRTX stock forecast 2025: Vertex is undervalued

Let's look at some biotech companies with stable cash flow and currently undervalued value stocks as targets for diversified portfolios. The company I shared today, called Vertex Pharmaceuticals (VRTX), is dedicated to the development of rare diseases, especially Cystic Fibrosis (CF). I have always had high respect for the rare disease group of pharmaceutical companies in the disease category. In addition, in the future, gene and cell therapies are subverting the role of rare diseases in the pharmaceutical industry, making rare diseases no longer uncommon. It's tasteless, but a field full of the future. Vertex Pharmaceuticals Inc. was established in 1989 by Joshua Boger and Kevin Kinsella. is headquartered in Boston. At that time, several very good research and development companies were established in the United States, including the aforementioned Regeneron, Gilead, and today's Vertex. Vertex In the past, he devoted himself to the development of small molecule drugs, wh...

Bear market coming, gold(GLD) assets become essential

The economic data of the global economic powers have been deteriorating, entering the bear market stage of the economy, and people have become more cautious when choosing asset investment. We should choose investment products with a low correlation coefficient with economic performance and investment products suitable for the current economic cycle. Investors should pay more attention to foreign exchange and commodity markets so that they can add value to your assets. Among many assets, anti-inflation commodities such as gold have become essential assets. Take gold as an example. For many years, gold has been regarded as an anti-inflation commodity by international capital markets and has been regarded as an important asset hedging tool by investors. There is also a saying, "The world bought gold during turbulent times." From basic political theory, we know that gold is not currency, and the currency is naturally gold and silver. Although gold has withdrawn from ...

Why has international oil(USO) prices plummeted?

As OPEC and Russia failed in negotiations and could not reach an agreement to reduce production, Saudi Arabia issued a comprehensive production increase announcement. Russia followed Saudi Arabia to increase production. Due to the sharp increase in oil supply, international oil prices plummeted, and US stocks were affected by the spread of the epidemic, and international oil prices The plunge, the U.S. stock market plummeted, triggering multiple fuses. S&P500 Index Oil is a commodity whose price is affected by supply and demand. When oil production increases, supply increases, prices fall, and at the same time affected by the epidemic, demand decreases, and prices also fall. Oil supply increases and demand decreases, which is the main cause of the plunge in international oil prices. In terms of oil supply, since the United States developed shale oil, US oil production has become the world's largest. The production cost of shale oil is more than US $ 40, which is the ...

Capital Flows Tracking Weekly

Release: January 27, 2021 The weekly Capital Flows estimate the industry's total, based on the report covering more than 98% of mutual fund and ETF assets. Collect actual mutual fund net new cash flows and ETF net issuance together monthly; therefore, there is a discrepancy between these weekly estimates and monthly flows. The data from the previous few weeks reflect revisions due to data adjustments, reclassifications, and changes in the number of fund reports. Mutual fund data represents the estimated value of net new cash flows, that is, new sales minus redemptions plus net exchanges, while exchange-traded fund (ETF) data represents net issuance, that is, net issuance minus total Redemption amount. This series does not include data on mutual funds that primarily invest in other mutual funds and ETFs that primarily invest in other ETFs.

INTC stock forecast 2025: Intel's acquisition of SiFive

SiFive, a chip design start-up company based on the RISC-V instruction set architecture, has received an acquisition intention from investor Intel. A person familiar with the matter, who asked not to be named, said that Intel has offered to buy SiFive for more than $2 billion. RISC-V with x86 and Arm As we all know, Intel dominates the industry leader in x86 architecture chip technology, while SiFive focuses on open-source RISC-V technology and employs several founding members of the RISC-V architecture. For a long time, the field of CPU instruction set architecture has been dominated by x86 and Arm. Since RISC-V was born at the University of California, Berkeley in 2010, it has gradually formed a certain competitive landscape with Arm after more than ten years of development. With the gradual refinement of the application field, the model of one chip making the world has become a thing of the past. Facing the hot AI and Internet of Things market, RISC-V i...

Catherine Wood's Disruptive Innovation ETF: Is ARKK worth buying?

ARKK ETF by Catherine Wood Catherine Wood's Disruptive Innovation ETF Warren Buffett is a stock god that everyone respected in the past, but in the past year, the female stock god Catherine Wood has become famous for the rising trend of technology stocks, and his head completely overshadows Buffett. Therefore, this time I want to talk to you in detail about the prestigious history of this female stock god. Catherine Wood founded ARK Investment in 2014 and listed the funds under her management under Exchange Traded Funds to facilitate investors to buy and sell, but the management fee is as low as some passive funds that track an index, about 0.75% per year. Ark Investment launched 4 ETFs in September and October 2014. The themes are Next Generation Internet, Automation Technology and Robots, Innovative Technology, and Genetics. Among them, Innovative Technology is currently the flagship ETF of Ark Investment and the most most popular ETF w...

NFLX stock forecast 2025: plummeted 22% after the earnings report.

Time to talk about Netflix, which plummeted 22% after the earnings report. First of all, Netflix's financial report this time does have its thunderous place, but part of the reason for the 22% drop in one breath is because the market sentiment has been very bad recently. At this time, the financial report thunderous will be punished more than usual. It is a wake-up call for companies that are about to report financial reports in the future, so we try to hold the stocks in the hands of companies with relatively stable historical financial reports and try to balance our positions as much as possible, to reduce the risk of financial report storms. After all, this quarter In a more dangerous period, back to the point. Let's take a look at Netflix's financial report this time. In the fourth quarter of 2021, Netflix's EPS was $1.33, exceeding analysts' estimates of $0.82, and revenue was just in line with expectations, with $7.71 billion, an increase of 16% year-on-year...

Disney stock forecast 2025: Is it time to buy now?

The much-watched Disney released its second quarter financial report this year. Benefiting from the strong recovery of theme parks and the rapid growth of streaming media business, its net profit and revenue both beat expectations. Disney's stock price rose 5% after the market. Let's take a look at the highlights of Disney's earnings this quarter. In the second quarter, Disney’s total revenue reached 17.02 billion US dollars, exceeding analysts’ expectations of 16.76 billion US dollars, a year-on-year increase of 45.5%. Net profit turned from loss to profit, from a loss of US$4.721 billion last year to a profit of US$918 million. From the perspective of departmental business, Disney Parks, Experience and Products departments have brought a boost to the company's revenue. Since the economic restart, Disney's theme parks, cruise ships and offline merchandise retail businesses have all been greatly improved. The quarterly revenue of these bu...

Bitcoin vs Ethereum vs Dogecoin: Which one is suitable to buy?

Bitcoin（BTC), Ethereum(ETH), and Dogecoin（DOGE） are the three most-watched cryptocurrencies. As a young investor, he has a strong mentality of pursuing returns and accepting new things. In recent years, cryptocurrencies have become the new favorites of many people. In particular, these three digital currencies have attracted the most attention: Bitcoin, Ethereum, and Dogecoin. However, not all cryptocurrencies are created equally and trying to determine which type is right for you can cause confusion. Each currency has advantages and disadvantages, and which currency you choose to invest in will depend on your situation. Investing in cryptocurrency must bear the risk First of all, you must consider whether cryptocurrencies are suitable for you because all cryptocurrencies are highly speculative and subject to great volatility. They have experienced the "currency disaster" in recent weeks, with an adjustable-rate of more than 30%. Fur...

4 George Soros advice to investors!

Who is George Soros? George Soros is a Hungarian-born Jewish businessman. It is one of the most influential investors in the world. In 1969, the Double Eagle Fund was established for Arnhold & S. Bleichroeder, an investment management company. In 1973, Soros and his assistant Rogers left Bleichroeder to co-found Soros Fund Management. In 1979, the well-known Quantum Fund was established and continued to make profits. In the Asian financial turmoil in 1997, George Soros sniped the Thai baht and the Hong Kong dollar, which was frightening. Learning from the experiences of successful people can benefit a lot. Here are 4 tips George Soros gave investors. First, to be successful, you must have ample free time. Most people want to be rich, but not everyone realizes the importance of free time. Many people spend a lot of time working to accumulate wealth, sleep, and forget. Set the goal to complete the work indicated by the superior, or the needs of business partners. But they hav...

FinanceLinkway

Search This Blog