Barrick gold mining
ullstein picture | Getty Images
Barrick Gold's stock rose 10% in premarket trading Monday after Berkshire Hathaway announced a stake in the gold mining company's stock from legendary investor Warren Buffett.
Berkshire added a $ 562 million position in Barrick Gold in the second quarter, the SEC announced on Friday. While the position is slim for Berkshire – which owns more than $ 89 billion in Apple stock – the conglomerate is the gold mining company's eleventh largest shareholder, according to FactSet.
This was an unusual move considering that Buffett, a longtime value investor, has long had an aversion to gold and prefers assets that have cash flows or pay dividends.
Miners' stocks are up more than 45% this year as investors move into safe port metals trading during the coronavirus pandemic. The price of gold had a banner year, topping $ 2,000 an ounce for the first time this month, driven by worries over the economic impact of Covid-19 and lower bond yields. Spot gold was up nearly 30% in 2020, making it one of the top performing mainstream assets this year.
Barrick Gold operates gold and copper mining operations in 13 countries. Its shares are traded on the New York Stock Exchange under the ticker GOLD.
Since Berkshire Hathaway's position in Barrick Gold is relatively minor, one of Buffett's investing lieutenants, Ted Weschler or Todd Combs, may be responsible for the purchase rather than the Omaha Oracle.
Subscribe to CNBC PRO for exclusive insights and analysis as well as live business day programs from around the world.