Welcome, curious investor! Are you wondering about the legendary Warren Buffett's stance on gold and how much of it Berkshire Hathaway holds? You've come to the right place. It's a fascinating topic because the "Oracle of Omaha" has a well-known, and often vocal, aversion to the yellow metal. So, let's dive into the details and uncover the truth.
Step 1: Understand Warren Buffett's Long-Standing View on Gold
Before we can even talk about how much gold Berkshire Hathaway owns, we have to address the elephant in the room: Warren Buffett's philosophy. For decades, he has been very clear about his opinion of gold as an investment.
Imagine you have a magic goose that lays golden eggs. Now, imagine you have a shiny, pretty rock. The goose is a productive asset; it creates something of value (eggs!). The rock just sits there.
This is the core of Buffett's argument. He believes that productive assets are the key to building wealth. A business, a farm, a rental property – these things can produce income, dividends, or crops. Gold, in his view, is an unproductive asset. It doesn't create anything. You buy it hoping someone else will pay more for it later. He famously said, “Gold... has two significant shortcomings, being neither of much use nor procreative. True, gold has some industrial and decorative utility, but the demand for these purposes is both limited and incapable of soaking up new production. Meanwhile, if you own one ounce of gold for an eternity, you will still own one ounce at its end
He's said that he would "much prefer owning a hundred acres of land near Nebraska, or an apartment house, or an index fund" over gold. This is the foundation of his value investing strategy, which focuses on businesses with strong fundamentals and the potential for long-term growth.
So, with this strong aversion in mind, the question becomes even more intriguing: did he ever change his mind?
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| How Much Gold Does Berkshire Hathaway Own |
Step 2: The Surprising, Short-Lived Foray into Barrick Gold
This is where the story gets interesting. In a move that sent shockwaves through the financial world and had gold bugs celebrating, Berkshire Hathaway made a surprising investment.
Sub-heading: The Barrick Gold Purchase
In the second quarter of 2020, during the height of the economic uncertainty caused by the COVID-19 pandemic, regulatory filings revealed that Berkshire Hathaway had purchased a stake in Barrick Gold (NYSE: GOLD), one of the world's largest gold mining companies.
How much was the investment? Berkshire Hathaway paid around US$560 million for about 21 million shares of Barrick Gold.
Why was it so surprising? This was a direct contradiction to Buffett's long-held philosophy. The news sparked headlines like "Buffett is backing gold!" and "The Oracle of Omaha has changed his mind."
Was it really Buffett? Some analysts speculated that the decision might have been made by one of Berkshire's other portfolio managers, like Todd Combs or Ted Weschler, who manage a portion of the company's investments. Regardless of who made the call, it was still a Berkshire Hathaway investment.
Sub-heading: The Quick Exit
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The excitement for gold investors was short-lived. Just two quarters later, in the fourth quarter of 2020, Berkshire Hathaway sold its entire stake in Barrick Gold. They reaped the rewards of gold's price increase during that volatile period and then exited the position.
What was the takeaway? This brief investment was widely seen as a short-term, opportunistic trade rather than a fundamental shift in Buffett's long-term investment philosophy. It was a tactical move to capitalize on the a "safe-haven" asset during a period of extreme economic uncertainty.
Step 3: The Current Status of Berkshire Hathaway's Gold Holdings
So, with that one brief exception, what's the current situation?
As of the current date, based on the latest available regulatory filings (such as the quarterly 13F filings with the U.S. Securities and Exchange Commission), Berkshire Hathaway does not own any gold bullion or significant positions in gold mining companies.
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Their portfolio remains heavily concentrated in productive assets. The latest filings show their top holdings include companies like:
Apple Inc. (a massive technology company that generates revenue and profit)
American Express Co. (a financial services company that facilitates transactions and earns fees)
Coca-Cola Co. (a consumer goods company with a strong brand and consistent dividends)
Bank of America Corp. (a major financial institution)
Chevron Corp. (an energy company with physical assets and a dividend)
These are all productive businesses that align with Buffett's core investing principles.
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Step 4: The Bottom Line on Berkshire's Gold
To put it simply:
Berkshire Hathaway does not currently own any gold bullion. The company's brief investment in Barrick Gold in 2020 was an anomaly and a short-term trade, not a change in strategy.
Buffett's stance on gold remains consistent. He views it as a non-productive asset. While it may serve as a safe-haven during times of turmoil, he prefers to invest in businesses that create value over time.
So, if you're looking for Berkshire Hathaway to be a major player in the gold market, you'll likely be disappointed.
10 Related FAQ Questions
How to find out Berkshire Hathaway's current holdings? You can find Berkshire Hathaway's latest holdings by checking their quarterly 13F filings with the U.S. Securities and Exchange Commission (SEC). These filings are public and provide a snapshot of their equity portfolio.
QuickTip: Check if a section answers your question.
How to understand Warren Buffett's dislike for gold? Buffett's dislike for gold stems from his core value investing philosophy. He believes in investing in productive assets—companies or properties that generate income or dividends—rather than non-productive assets like gold, which just sit there.
How to buy physical gold like a billionaire? While Berkshire Hathaway doesn't own physical gold, individuals can buy it in the form of coins or bars from reputable dealers. It's important to consider storage and insurance costs.
How to invest in gold like Berkshire Hathaway did in 2020? Berkshire Hathaway's brief investment was in a gold mining company (Barrick Gold), not physical gold. You can invest in gold mining companies through stocks or exchange-traded funds (ETFs) that track them, but remember this is a different investment than owning the physical metal.
How to analyze a gold mining company's fundamentals? When analyzing a gold mining company, look at factors like its production costs, reserves, management, and geopolitical risks associated with its mining locations, in addition to the price of gold.
How to use gold as a hedge against inflation? Gold is often considered a hedge against inflation because its value tends to increase when the purchasing power of fiat currencies decreases. However, it is not a guaranteed hedge and its price can be volatile.
How to invest in a portfolio similar to Berkshire Hathaway's? You can invest in the same publicly traded stocks that Berkshire Hathaway holds, such as Apple, Bank of America, and Coca-Cola, by purchasing shares through a brokerage account.
How to view gold as a "safe-haven" asset? During times of economic or geopolitical uncertainty, investors often flock to gold as a "safe-haven" asset because it is seen as a reliable store of value when other investments, like stocks, are volatile.
How to compare investing in gold to investing in silver? Warren Buffett has a more favorable view of silver than gold, as he believes silver has more industrial uses, making it a more "productive" asset in his view. However, both are considered precious metals and their prices can fluctuate based on similar factors.
How to interpret a billionaire's investment moves? When interpreting investment moves by figures like Warren Buffett, it's crucial to look beyond the headlines. A small or short-lived position may be a tactical play or a decision by a different portfolio manager, not necessarily a reversal of a long-standing philosophy.
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