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Warren Buffett traded Goldman Sachs for gold

fortune.com

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Re: Warren Buffett traded Goldman Sachs for gold

#21

Post by onetimemanytime »

ralph84 wrote: post #18

Buffett spent the last six months panic selling. "Be fearful when others are fearful" is his new motto. He doesn't have the same political connections he had during the GFC to get in on the sweet government-backed bailout deals this time around.

Not connections, this time the FED bailed out companies. Last time they had no government cash or was very scarce so they had to call the one person with a purse. And Buffet made the rules, accordingly to the power he held over the borrowers.

Re: Warren Buffett traded Goldman Sachs for gold

#22

Post by mxschumacher »

ralph84 wrote: post #18

Buffett spent the last six months panic selling. "Be fearful when others are fearful" is his new motto. He doesn't have the same political connections he had during the GFC to get in on the sweet government-backed bailout deals this time around.

Moving less than 5% of one's portfolio can hardly be considered panic selling. The long equity exposure is over $215bn.

Re: Warren Buffett traded Goldman Sachs for gold

#24

Post by nodesocket »

muzika wrote: post #3

There must be something coming to our economy soon if he is willing to bet so much on gold.

I constantly hear Robinhood type traders (errr, I mean investors) saying a wave of inflation is coming. While true that an inflationary environment is good for gold, I am not sold on massive inflation coming. Also does not help that gold is at all time highs. I sold out of my position of Barrack about two months ago; perhaps I was a bit early, but I'll take the profits.

Re: Warren Buffett traded Goldman Sachs for gold

#25

Post by starbugs »

muzika wrote: post #3

There must be something coming to our economy soon if he is willing to bet so much on gold.

Looks more like a hedge to me, but I think you are right. It's a signal. Most people will confuse this with noise, ignore it, and move on.

Even if it's not a big deal considering the overall Berkshire investment pool, this is a considerable divergence from their strategy so far. Very telling.

Re: Warren Buffett traded Goldman Sachs for gold

#26

Post by missedthecue »

miles wrote: post #2

Surprising move from the man who said something along the lines of[1]: "Gold gets dug out of the ground in Africa, or some place. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head." [1] https://quoteinvestigator.com/2013/05/25/bury-gold/

Well he didn't buy gold, he bought shares in a company whose main business is gold mining.

Re: Warren Buffett traded Goldman Sachs for gold

#27

Post by raverbashing »

missedthecue wrote: post #26
miles wrote: post #2

Surprising move from the man who said something along the lines of[1]: "Gold gets dug out of the ground in Africa, or some place. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head." [1] https://quoteinvestigator.com/2013/05/25/bury-gold/

Well he didn't buy gold, he bought shares in a company whose main business is gold mining.

This reminds me of that "sells shovels" way of becoming a millionaire

Re: Warren Buffett traded Goldman Sachs for gold

#29

Post by refurb »

miles wrote: post #2

Surprising move from the man who said something along the lines of[1]: "Gold gets dug out of the ground in Africa, or some place. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head." [1] https://quoteinvestigator.com/2013/05/25/bury-gold/

The headline hides the fact he’s not buying gold, but rather a gold mining company.

Yes, the stock tracks the prices of gold, but the stock beat gold by 45% so far this year.

It sounds like buffet is investing in a mining business not actual gold (albeit they are linked somewhat).

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