As far as Canadian companies I’d recommend investors put on their watch lists, Barrick Gold (TSX:ABX) (NYSE:GOLD) continues to be a favourite of mine, for various reasons. In this article, I’m going to discuss one important reason I’ve been keeping this stock near the top of my watch list and buy a list of late.
Late this summer it was announced that Berkshire Hathaway’s (NYSE:BRK.B), Warren Buffett took a substantial stake in Berkshire while adjusting portfolio exposure downward to financials, signaling a bearish position on the conglomerate’s outlook for the American and global economy over the near term.
With gold prices continuing to climb, as the market begins to price in such concerns, this investment is already looking like a winning one for smart money investors.
As I’ve written about in the past, following the smart money into certain trades is a great way to learn and assess which sectors are so which sectors one ought to focus on. Any stock that is on Buffett’s buy list ought to be on the watch list of conservative long-term investors, in my view.
This endorsement could be a great long-term catalyst for Barrick’s stock price relative to other gold names, so for those looking for precious metals exposure, I’d recommend considering the stock first.
Invest wisely, my friends.