Barrick Gold rose 12% on Monday after Warren Buffett's Berkshire Hathaway announced it was buying a stake in the mining company.
Berkshire Hathaway bought 21 million shares in a gold and copper company worth about $ 564 million in the last quarter, filings with the Securities and Exchange Commission showed Friday.
The purchase came as a surprise; Buffett criticized gold, arguing that it is not as good for investment as business, farms, and real estate. However, the precious metal was on the verge of collapse this year as the coronavirus pandemic forced investors to resort to so-called safe haven assets.
Although Berkshire Hathaway has a small stake in Barrick Gold - the entire portfolio is valued at about $ 202 billion - Buffett's company is currently the mining company's 11th largest shareholder.
In addition to investing in Barrick Gold, Buffett's Berkshire Hathaway cut its stakes in major banks such as Wells Fargo and JPMorgan and left Goldman Sachs.
Barrick Gold was up 45% year over year until the close on Friday.