Berkshire buys 20.9 million shares of Barrick Gold for £430.50 million

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Aug 17, 2020
  • Berkshire buys 20.9 million shares of Barrick Gold for £430.50 million.
  • The U.S. conglomerate slashes its stake in Wells Fargo and JPMorgan.
  • Warren Buffett's firm sells its remaining stake in Goldman Sachs.

In an announcement on Friday, Berkshire Hathaway Inc. (NYSE: BRK.A) revealed to have reduced its stake in the top U.S. banks, JPMorgan Chase & Co and Wells Fargo & Co. Warren Buffett’s company also sold all of the shares it held (1.9 million) of Goldman Sachs Group Inc. Morgan Creek partner, Jason Williams, predicted on Monday that Buffett will go for Bitcoin.

Class A shares of Berkshire opened less than 1% down on Monday. On a year to date basis, Berkshire is currently 8% down. Compared to a low in March ascribed to COVID-19, however, the company has recovered more than 20%.

Berkshire has offloaded over 50% of its stake in Wells Fargo since 2018

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As per Berkshire’s regulatory filing that disclosed its investments listed in the United States as of 30th June, the company also highlighted to have invested £430.50 million in Barrick Gold Corp. Berkshire now holds 20.9 million shares of one of the largest mining companies in the world.

Including the cut on Friday, Berkshire has now slashed its stake in Wells Fargo by 26% to 237.6 million shares in the quarter. Buffett has been an active investor in Wells Fargo since 1989. At the peak, Berkshire’s stake in the U.S. bank valued £24.44 billion.

Started in the first quarter of 2018, however, the American multinational conglomerate has offloaded over 50% of its stake in Wells Fargo on the back of scandals that accused the financial services firm to have mistreated customers.

In JPMorgan, on the other hand, the Omaha-based company cut its stake by 62% to 22.2 million shares. Buffett, however, is still active in the banking industry in line with his statement in May that the top U.S. banks were well-positioned to combat the economic blow from the Coronavirus pandemic.

Berkshire expanded investment in the Bank of America Corp in July

Berkshire expanded its investment in the Bank of America Corp last month by over £1.53 billion. Its £20.62 billion investment in total represents an 11.9% stake in the Bank of America Corp. The company’s filing on Friday also reported it to have pulled out of its investment in the Burger King parent organisation, Restaurant Brands International Inc.

Class A shares of Berkshire Hathaway performed fairly upbeat in the stock market last year with an annual gain of a little under 15%. At the time of writing, it is valued at £382.50 billion and has a price to earnings ratio of 22.97.  

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