RE:RE:hugerTXRogers wrote:
likeike wrote: I think Buffet getting into gold is going to be a lot huger for the next couple of months then
a lot of people realize Gold Humbug was his motto. I always loved this tidbit from him.
" dig gold out of a hole in South Africa and bury it in another hole in the US and pay somebody to guard it while it loses money. "
Berkshire was up 12% in the aftermarket. IKE
Hi Ike
It may appear "huge", but I am not so sure it really is so Earth shattering . Buffett (and his fund) is only good at investments where he can influence and control the trade. He is a MOAT investor.
Gold is not one of those trades.
In addition, despite the misplaced myth that his BH fund is so rewarding to investors, that facts actually reveal that its performance is actually quite mediocre relative to many indices measured in similar time frames. I was never a fan of his BS.
That includes gold.
https://i1.wp.com/bmg-group.com/wp-content/uploads/2020/01/Gold-vs-Berkshire-Total-Returns-20-Year-Chart-3.png
Buffett is just huge. The size one gets when he simply lives so long in such a market system as the US. He will also discover (because of his size) that he will pay a premium to enter the sector.
As for gold, he missed the trade by nearly 20 yrs. Nothing to admire there.
Tx
I wonder what the‘implications’ if any ,of this move are by Buffett and if they can infact be understood .Intentional or not ,Im pretty surethat gold equity investors may well be subject here to at least a bit of ‘Management Perspective’, by which they may well have their emotions and behaviour influenced by Buffetts actions . Actions speak louder than words ,and we have all had to listen to his nonsense relating to gold for a long long time . I am no fan of his.
Absolutely nothing to admire re his gold trading here that we know of . But what do we really know ?
Buffetts foray into the silver market on a couple of occasions was done with stealth ,and his last accumulation of ,was it ,One Hundred and eleven miliion ounces of paper silver ,out did the Hunts position . But no postion limits or cornering of the market was mentioned . He took no delivery of the physical I believe . His actions certainly moved the price and aided the share price of many many silver miners . So this time with the puchase of Barrick ,what are we to make of this ? He obviously has not read ,or does not take seriously Katusas theory relating to the ‘dollar swap lines’ with different countries .Barrick is heavily exposed in their mining operations about 60 % if memory serves, to non dollar swap line countries . With what is coming down the pike,my opinion is that this is
way too high risk. And its no way priced him . Personally ,I would be wary of this . So what is going on here .
I cannot believe that he does not own physical gold . He has shown that he knows where value lay in silver before . Something feels strange about this move .Huge or not .? Im not sure what to make of it ..
Would you consider expanding on you post Tx .,Am I over-overthinking this? . Its a badly timed trade on the face of it and this man is not an outsider . He was begging people publicly not so long ago to not buy gold . I remember he said you could do not much more than fondle it Huge or not ,all truly bizarre coming from him..Wonder what his dad would have made of all of it . Is he jumping a sinking ship maybe with no physical available in quantity ?
FW