Warren Buffett: It’s Time to Buy Gold Stocks

Warren Buffett: It’s Time to Buy Gold Stocks

Even Warren Buffett, one of the greatest investors of our time, bought some gold for his portfolio. Specifically, in the second quarter, he invested approximately US$565 million in Barrick Gold (TSX:ABX) (NYSE:GOLD) through Berkshire Hathaway . Since then, the gold miner stock has only appreciated about 7%.

Usually, Buffett doesn’t trade in and out of stocks quickly. He would potentially sell his public stock holdings when they arrive at their intrinsic values. Often, that doesn’t happen overnight.

Gold miners don’t pay much of a dividend. Right now, Barrick Gold only yields 0.60%. So, he must expect to get meaningful returns from stock price appreciation. Rising gold prices

Barrick Gold stock has been in a renewed upward trend since late 2018. The growth of its profits really started coming through in 2019 when it boosted its revenue by 34% to US$9,717 million. The EBITDA margin also improved to 46.8% from 2018’s 41.7%. […]

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