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. In any case, Barrick Gold managed to surpass its November high today and therefore showed a type of strength that might not be related to the situation in Eastern Europe. Subscribe now to The Gold Bull Portfolio, my marketplace service where I help my subscribers find the best opportunities to earn money in the gold, silver and copper mining sector. If you bought gold stocks as a hedge against the pandemic, as Warren Buffet did, you could sell, since many of the impacts of COVID-19 on the economy have disappeared.
The strategy is in line with Barrick's plans to return excess funds to shareholders, according to the company. When information about the Warrens Berkshire investment spread, the ABX stock rose to the highest price in the last 7 years and its value rose by 62%. Amateur investors can determine whether or not it makes sense to have any exposure to gold in their portfolio. Generally speaking, fund managers do not recommend that more than 5% of a person's investment portfolio be exposed to gold.
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. In the short term, Barrick shares could continue to face some pressure if gold prices weaken, although any decline in profits due to gold should be partially offset by rising copper prices (Barrick owns and operates four copper mines). As the chart above shows, it would be defensive to have some gold stocks in your portfolio if you think a substantial stock market correction could occur. Barrick Gold shares rose 10.5% on Monday after Berkshire Hathaway, owned by legendary investor Warren Buffett, revealed its stake in the gold mining company's shares.
Now, the reason they prefer gold is because you can take gold anywhere, unlike stocks and real estate. 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. If the recovery period is prolonged, gold performs better than stocks, but if not, obviously, the stock market will increase. The following 10-year chart illustrates how Barrick Gold shares tend to fall when the stock market rises and rise when the stock market falls.