American billionaire investor and philanthropist Warren Buffet’s Berkshire Hathaway Inc. said in a statement on Friday that it had downsized its stakes in some of the largest lenders in the Unites States including JPMorgan Chase & Co.
and Wells Fargo & Co., while the investment tycoon had also quitted an existing investment in Goldman Sachs Group Inc. Aside from that, Berkshire Hathaway had also disclosed a regulatory filing date back to June 30 which had detailed that the Nebraska-based American multinational conglomerate holding company had fleshed up its stake in Toronto-based mining farm Barrick Gold Corp adding that the company had purchased 20.9 million common stocks of Barrick Gold Corp.
worth of 563.6 million.
Berkshire beefs up Barrick stake amid safe-haven gold buying spree
In point of fact, latest move from Berkshire Hathaway, the brainchild of 92-year-old American investor Warren Buffet, was brought into light a week after Barrick Gold had set an all-time closing high on record, while on Friday’s aftermarket trading, shares’ prices of Barrick Gold gained 3.2 per cent further following reveal of Berkshire’s announcement.
Nonetheless, Berkshire had slashed its Wells Fargo stake by 26 per cent over the second quarter of the year to 237.6 million shares. Notably, Berkshire had shrugged off nearly half of its Wells Fargo stakes since reveal of a scandal that the Wall St.
lender had been mistreating its clients. Apart from that, the regulatory filing dated back to June 30 had also unveiled that Berkshire Hathaway had given up 62 per cent of its stake in JPMorgan to 22.2 million shares, while it had also quitted the remaining 1.9 million stakes in Goldman Sachs.
In factually, a majority of the large US lenders had benefitted in the second quarter due to a large-scale trading revenues, nonetheless, as signs of a near-term rebound in US economy from the pandemic induced slump became more prominent ahead of a November 3 US Presidential election and the Capitol Hill had botched to reach an accord over another set of trillion-dollar pandemic relief bill which in effect would likely to polish the US President Donald Trump’s election campaign, Buffet’s move to slash stakes in US lenders had been signalling large-scale headwinds for the US economy over the coming months.
Besides, the new investment in Barrick Gold Corp. had reaffirmed market belief that the gold buying bonanza might sustain for a longer period than initially anticipated.