Did Buffett Just Bet Against The US? Berkshire Buys Barrick Gold, Dumps Goldman

This is going to get awkward.

Berkshire Hathaway's latest 13F just dropped and contained inside is a signal that none other than the Oracle Of Omaha appears to now be quietly betting against The United States.

Why? Because for years - in fact for as long we can remember - Warren Buffet has denigrated gold:

In a speech delivered at Harvard in 1998, Buffett said:

“(Gold) gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.

He once famously said:

Gold is a way of going long on fear, and it has been a pretty good way of going long on fear from time to time. But you really have to hope people become more afraid in a year or two years than they are now. And if they become more afraid you make money, if they become less afraid you lose money, but the gold itself doesn’t produce anything.”

In his 2011 letter, Buffett noted that for $9.6 trillion you could buy "pile a" — all of the gold in the world, or "pile b" — the entire US cropland (400 million acres) plus 16 ExxonMobils and still have another $1 trillion left over.

"Admittedly, when people a century from now are fearful, it's likely many will still rush to gold," he wrote. "I'm confident, however, that the $9.6 trillion current valuation of pile A will compound over the century at a rate far inferior to that achieved by pile B." 

In 2013, Buffett even went so far as to mock investors betting on gold, saying that there were better places to put your money.

“What motivates most gold purchasers is their belief that the ranks of the fearful will grow,” Buffett wrote in 2012. “During the past decade that belief has proved correct. Beyond that, the rising price has on its own generated additional buying enthusiasm, attracting purchasers who see the rise as validating an investment thesis. As ‘bandwagon’ investors join any party, they create their own truth -- for a while.”

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Dave R. Johnson 2 months ago Member's comment

This is the problem with the flawed human condition. Everyone wants fear and BS pushed more than they want simple facts.

Buffet holds 80B+ in $AAPL, 50B+ in financials, buys back billions in $BRK-B stocks and the only head line click bait shit is.....

"Is Buffett betting against the US"....

Because hey buys 600Mil in #GOLD??? Serious!!!! Honestly this stuff should be illegal and people should pay penalties/fines for doing it.

This is why humans fail!!!

William K. 2 months ago Member's comment

What gold investing lacks in impressive quick-turn profits it does seem to make up for in stability, And stability can provide a lot of value at times. So to state the rather obvious: The value of gold to an individual is dependent on what they want to achieve.

The flaw in mister Buffet's thinking is presuming hat everybody else's goals are the same as his goals. That is probably not the case.

Daniel Charles 2 months ago Member's comment

"You can bet on Amer­ica, but you are go­ing to have to be care­ful on how you bet. Sim­ply be­cause mar­kets can do any­thing,” he said.

Hence $AAPL $BAC $AXP

Harry Goldstein 2 months ago Member's comment

#Buffett didn't bet against US..... Buffett holds most of his $$ in $AAPL and another $50 BILLION in Financials.

Yet his tiny $ buy in GOLD has everyone thinking he is long GOLD and not real assets. Its a dumb $$ hedge in the $GLD world. EVERYONE has a gold hedge, whoopie shit.

He bought more of his own damn shares BACK!!! $BRK.A

Dave Schneider 2 months ago Member's comment

Wait until #Buffett's next disclosure. He buys a small stake before the reporting period ends and then loads up afterwards knowing people will pile in. Of course he owns #Apple. He's all for slave factories, turning people into socially inept zombies, tracking and controlling people, and destroying the social fabric of society. He's America's #1 hypocrite.

Chee Hin Teh 2 months ago Member's comment

Mant thanks again Tyler