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18.08.202009:17 Forex Analysis & Reviews: Is Buffett cheating on principles? Signal for gold buyers

Berkshire Hathaway, led by the "visionary from Omaha", Warren Buffett acquired more than 20 million shares of gold miner Barrick Gold in the second quarter of this year. The report, which the investor provided to the SEC Commission, says about $ 562 million, which was spent on these purposes.

The event is notable since Buffett has not previously invested in gold. Moreover, he systematically and consistently criticized colleagues who choose banking metals for investment. As an example, two decades ago, Buffett said during a speech at Harvard that people behave strangely, digging up a piece of gold in one part of the world, transporting it to another part of the world, then to bury it again underground (in storage) and put a guard. "Anyone looking at this from Mars would scratch their heads in puzzlement," Buffett said at the time.

Withdrawal from the banking sector or redistribution

The simultaneous sale of US bank securities by Berkshire Hathaway sparked even more discussions in the investment sector. Thus, the share of the conglomerate in JPMorgan decreased by 60% and by 42% in PNC.

The mainstream media and specialized analytical platforms were full of headlines that Buffett stopped believing in the prospects for the US economy. Some observers make very bold predictions that the next equally important change in the investment strategy of the "Omaha Seer" will be investments in cryptocurrencies. However, such statements are rare so far.

More conservative analysts urge colleagues not to engage in information speculation. After all, Buffett does not really leave the banking sector, but only reallocates resources. As an argument, such experts cite the situation with Bank of America. The fact is that Berkshire Hathaway has been increasing its share in this asset over the past two months.

In addition, the attention of the industry community deserves the fact that the investor did not give up his stake in Apple. The latter, as before, accounts for more than 40% of the holding company's portfolio. According to some sources, Buffett's conglomerate is the second largest shareholder in the Apple brand (in terms of investment).

Not Buffett alone

The attractiveness of gold in today's market conditions also affects other large investors. From the same reports sent to the SEC, it became known about the increase in the share of precious metal in the portfolio of Bridgewater Associates founded by Ray Dalio, one of the largest hedge funds on the planet.

The fund has invested about $ 400 million in gold. Thus, more than $ 1.1 billion of Bridgewater Associates is now accumulated in the precious metal.

As previously reported, quotes of gold futures continued to rise during American trading on Monday. Elon Musk's gold, bitcoin and shares remain the most profitable assets in 2020.

Tatiana Kravchenko,
Analytical expert of InstaSpot
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