Business & Investment

Invest like Warren Buffett with this Canadian gem

Investment icons like Warren Buffett have made their billions over decades for reasons. I am an investor trying to follow in these footsteps.If you find yourself in a similar camp, this Canadian stocks For you

Barrick gold

Buffett’s only Canadian stock Berkshire Hathaway Recently added Barrick gold (TSX: ABX)(NYSE: GOLD).. This Canadian gold miner has been my top pick for many years. This verification from Omaha’s Oracle is welcomed by stupid readers who have received my previous advice.

Barrick’s value is currently only partially valued by the market. In my view, this is a stock that has risen 25% to at least third quarter levels, based on current and near future gold prices.

Gold prices can only rise from here

Recently, I’ve seen Congress pass a new stimulus bill in the United States and stimulus measures are taken up. In Canada, stimulus continues and most central banks around the world are still very tolerant. All printed dollars devalue the currency globally. US monetary policy is generally increasingly important for this asset class when the price of commodities like gold is in US dollars. Specifically, gold miners like Barrick offer significant benefits in an environment of rising commodity prices.

My five-year price target for gold is still $ 10,000 per ounce and I think this asset class will soon return to an uptrend. Gold has not been as effective a hedge as history has shown. However, all assets will return to the long-term average. In this context, gold miners like Barrick haven’t been this cheap for 30 years.

Buffett is one of the largest value investors in history. If he’s choosing Barrick Gold, that’s why.

Buffett sold part of his stake

It is important to note that Berkshire revealed in a recent quarterly report that the conglomerate sold Barrick’s chunks in the third quarter. That’s a fair amount of sales, more than 40% of the position.

Some speculate that his previous stance on gold overturned the decision-making powers he had given to his minions. Others believe that the Barrick trade is over. In the end, stocks fell more than 25% from their 52-week highs.

Conclusion

Barrick is a great diversified investment for investors looking to defend their portfolio. The stock may underperform compared to other growth plays in the coming quarters. But in the long run, I think this stock is of tremendous value. In my view, long-term investors will be very successful if they buy at these levels and hold for more than 5 years.

Speaking of the best Canadian stocks out there …

10 Best Stocks to Buy This Month

Ian Butler, a well-known Canadian investor, has nominated 10 shares for Canadians to buy today. So if you’re tired of reading about getting rich in the stock market, today may be a good day for you.
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Stupid contributor Chris Macdonald There are no positions in any of the listed stocks. Motley Fool owns and recommends Berkshire Hathaway (Class B Share) shares and recommends the following options: A $ 200 call to the short Berkshire Hathaway (B Share) in January 2021 and a $ 200 call to the long Berkshire Hathaway (B Share) in January 2021.

Invest like Warren Buffett with this Canadian gem

https://www.fool.ca/2021/01/02/invest-like-warren-buffett-with-this-canadian-gem/ Invest like Warren Buffett with this Canadian gem

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