World’s most successful investor fails in gold: Warren Buffett sold his entire holdings in gold, dislocation from losses after first investment

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Warren Buffett is considered the world’s most successful investor in equity.

Warren Buffett, one of the most successful investors in the world, has sold his entire gold holdings in the last one year, amid huge fluctuations in gold prices. His company Berkshire Hathaway provided this information in a regulatory filing. Berkshire Hathaway sold gold bricks between the fourth quarter of 2020 (October – December). The company also pulled out some gold holdings in the third quarter.

When Buffett bought gold in the summer season last year, the price of gold was $ 2,065 per ounce (28.35 grams). Buffett’s company began selling gold in the fourth quarter when the price of gold fell below $ 1,800 an ounce, a 12.8 percent loss from this investment. When Buffett’s company started investing in gold, those who knew him were surprised.

The reason is that Buffett is known for his negative view of gold. In 1998, Buffett described gold in his lecture as a waste. He had said that it has no practical use. Analysts like Max Keyser called investment in gold a 360-degree change in Buffett’s investment strategy. His comment in the social media post was, Buffett is buying gold by selling shares of banks. This is a complete change in their attitude. Even if they do, what to do. Central banks are printing millions of dollars of currency and reducing the value of money.

Other big companies are also selling gold nearby

Not only Buffett’s company, other investment companies were also cutting gold positions. For example, a regulatory filing by BlackRock shows that the world’s largest asset manager has bought a $ 29 million (about Rs 211 crore) stake in Silver Trust by selling gold shares worth more than about Rs 3,414 crore in SDPR.