[beshannon]

Originally Posted by logo

Warren Buffet is dumping banks for gold miners:

https://www.google.ca/amp/s/fortune....an-kroger/amp/

I’ve mentioned on here recently my rationale for gold miners - as a rookie investor, nice to see Warren do the same. I’ve felt that relative to the health of the major gold mining companies and the current gold price environment, gold miners are a real value, especially after the gold shakedown earlier this week. If you look at the GDX historical chart, it was trading in the 55-60s in 2011 when gold was at 1650-1750.

For those interested, I think GDX is a great play. I don’t know all the ins and outs of the mining business, and GDX is a gold mine ETF. For what it’s worth, it’s two biggest components representing 25% of its holdings are Newmont (up 2.96% AH Friday) and Barrick (up 8.19% AH Friday). Yet GDX only went up 1.49% AH (and several of the smaller holdings also gained >1.5% AH), so I think there is some catch up room on Monday, to say nothing of the possible influx of buyers following Buffets moves.

Well to be fair he is not dumping banks. He is trimming positions and still holds billions of dollars in bank shares.

https://seekingalpha.com/article/436...q2-2020-update

I have no opinion on gold stocks as I would prefer to buy the stocks that produce the machines to do the mining.