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Did Buffett Just Bet Against the US? Berkshire Buys Barrick Gold, Dumps Goldman

(ZeroHedge) This is going to get awkward.

Berkshire Hathaway’s latest 13F just dropped and contained inside is a signal that none other than the Oracle Of Omaha appears to now be quietly betting against The United States.

Why? Because for years – in fact for as long we can remember – Warren Buffet has denigrated gold:

In a speech delivered at Harvard in 1998, Buffett said: “(Gold) gets dug out of the ground in Africa, or someplace. 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.”

…Buffett’s Berkshire Hathaway not only dumped all his airlines – as we learned previously 0 but has also liquidated huge amounts of its exposure to US banks (exiting Goldman Sachs entirely).

  • Berkshire’s JPMorgan Stake Down 62% to 22.2M Shrs
  • Berkshire’s Wells Fargo Stake Down 26% to 238M Shrs
  • Berkshire trimmed its bet on PNC Financial and M&T Bank as well as Bank of New York Mellon Corp., Mastercard, and Visa.
  • Berkshire Exits Goldman stake entirely

And while he modestly added to his positions in Kroger, Store Cap and Suncor Energy, the only new stock he bought in Q2 was… the world’s (formerly biggest) gold miner: Berkshire took a new stake (20.9 million shares) in Barrick Gold, a holding that was valued at about $564 million at the end of that period.

So, the famously anti-gold investor has abandoned banks – ‘the backbone of America’s credit-driven economy – in favor of a gold miner (which was the largest in the world until last year when Newmont bought Goldcorp).

[Read more…]

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