Berkshire makes a bet on gold market that Buffett once mocked

Warren Buffett’s Berkshire Hathaway added Barrick Gold to its portfolio in the second quarter.

Berkshire took a new position in Barrick, buying 20.9-million shares, or 1.2% of the company’s outstanding stock, with a current market value of $565-million, according to a regulatory filing on Friday. The filing shows moves made by Buffett or his two investing deputies, Todd Combs or Ted Weschler.

In the past, Buffett, the billionaire chairman of Berkshire, cautioned against investing in the metal because it’s not productive like a farm or a company. Now, gold miners are benefiting from surging bullion prices that are boosting profit margins as costs of production have steadied, making them increasingly attractive investments. Large miners including Barrick and Newmont have been hoping to woo back generalists who fled the sector years ago.