Barrick - The Precious Metal Miner That Changed Buffet’s View on Gold

By Spyros Maris (University of Glasgow), Luca Poschl (University of St. Gallen), Alvaro Bernal (King's College London), Ory Ratoviz (Cal Poly SLO - Orfalea College of Business)

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Summary


With the recent uproar of a potential market bubble crash, partially due to the Fed’s unstoppable money printing, the importance of gold as a safe-haven has been reinforced. Many recognized investors, such as Warren Buffet and Cathie Wood themselves, have lately been addressing the issue and it only comes by nature to talk about the hedging opportunities investors have to minimize their market risk.


Today, we are presenting Barrick Gold Corporation, a long-established gold miner with a market cap of $37 billion having many production sites scattered around the globe. With the current bullish trend in the gold industry, we expect Barrick to position itself to attain a part of this growth and take advantage of the rising prices of the yellow metal. However, our analysis depicts that the company is currently trading at its intrinsic share price of $20.


Barrick has lately been a subject to talk about and it is therefore why we initiated coverage on the company. In August 2020 Berkshire Hathaway acquired a stake in Barrick to later exit that position in February of this year, which was later followed by an unexpected beat on analysts estimated for Barrick’s Q4 earnings.


Click here to read our report and find out more about our take on Warren Buffet’s decision to exit this holding.



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