This is a good lesson to avoid blindly following the movements of other investors, since they are different from yours and you'll never know what other investors mean when buying or selling a stock. Let's take a closer look at Barrick Gold's performance, its prospects, and why Buffett got rid of all of his stake in the gold company. Buffett decided to sell GOLD shares because the pandemic could start to ease soon, so that's an understandable decision. 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.
At the end of the previous quarter, Buffett's Berkshire Hathaway held about 12 million shares of the Canadian gold and copper mining company. Buffett's latest investment moves revealed that he withdrew from Barrick Gold completely, and there are very good reasons to do so. Berkshire's original purchase of Barrick surprised many, as Buffett is known for his negative view of gold. 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.
Buffett has never been a fan of Bitcoin or the rare yellow metal, so Berkshire's investment in Barrick Gold was a surprise in and of itself. With gold prices falling in a recovering economy, Barrick's expectation that operating costs will remain high points to a bleak picture for the gold producer this year.