Investment

2 Gold Stocks Beating Warren Buffett’s New Investment

Published

4 years ago

August 20, 2020

The legendary investor Warren Buffett and his long-time investment partner Charlie Munger are known to dislike gold as an investment option. Surprisingly, they seem to have changed their views on gold and gold-related investments during the ongoing COVID-19 crisis. Buffett-led Berkshire Hathaway recently revealed that it bought around 20.9 million shares of Barrick Gold (TSX:ABX)(NYSE:GOLD) — a Toronto-based gold and copper mining company with a market cap of $68.3 billion.

Other gold stocks are beating Buffett’s new investment

As the news of Buffett’s stake in Barrick Gold came out, its stock surged by 11.3% on Monday. The stock couldn’t maintain all these gains though and lost nearly 4% in the next couple of days. Barrick Gold has gained about 3.2% in the last month. However, many other gold stocks have outperformed Barrick Gold as well as the broader market by a wide margin during this period.

Let’s take a look at two top TSX gold mining stocks that are beating Barrick Gold stock — Warren Buffett’s new investment. These two gold stocks could be perfect for new investors or stock market beginners.

The first gold stock to buy now

Agnico-Eagle Mines (TSX:AEM)(NYSE:AEM) is a Toronto-based gold producer that has led the gains in the TSX60 index lately. Its stock has risen by nearly 17% in the last month, and it’s trading with 33% year-to-date gains.

Agnico-Eagle is most reliant on its home market, as nearly 72% of its total revenue in 2019 came from the Canada segment. After COVID-19-related temporary shutdowns earlier this year, the company recently ramped up its operations. As a result, Agnico-Eagle Mines increased its 2020 production guidance in July. It expects its gold production to be between 1.68 to 1.73 million ounces this year.

In the second quarter, Agnico-Eagle’s revenue rose by 5.8% year over year (YoY). The company also reported a massive 80% YoY rise in its Q2 adjusted earnings to US$0.18 per share.

Agnico-Eagle Mines’s focus on fast post-COVID-19 ramp up, solid 2020 production outlook, and stable financials make it a great gold stock to consider buying for stock market beginners right now.

My second gold stock to buy now

When it comes to investing in gold stocks, I find the Canadian gold mining and exploration firm Kirkland Lake Gold (TSX:KL)(NYSE:KL) to be among the top. It currently has a market cap of nearly $19.2 billion.

While Kirkland Lake isn’t as big as Barrick Gold or Agnico-Eagle Mines in terms of market capitalization, it certainly has proved to be a much better investment option when it comes to yielding solid returns in the long term. The shares of Kirkland Lake have yielded over 2,900% positive returns in the last five years — making it one of the top TSX stocks to consider buying for new investors.

Kirkland Lake’s fundamentals remain strong, with a 58% rise in its Q2 adjusted earnings to US$0.79 per share. The company also reported US$581 million revenue in the second quarter — more than double from a year ago.

Foolish takeaway

While it’s always a good idea for beginners to follow great investors like Warren Buffett’s value investing principles, it’s not always wise to buy exactly the same stocks that he’s buying. Instead, I would encourage new investors to look for good buying opportunities themselves. The key to making big wealth from the stock market is to start saving money right now and start investing it in good stocks to hold for the long term.

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Economy

S&P/TSX composite down more than 200 points, U.S. stock markets also fall

Published

1 week ago

September 6, 2024

Anne Joseph

TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.

The S&P/TSX composite index was down 239.24 points at 22,749.04.

In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.

The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.

The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.

The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.

This report by The Canadian Press was first published Sept. 6, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets also higher

Published

2 weeks ago

August 29, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.

The S&P/TSX composite index was up 171.41 points at 23,298.39.

In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.

The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.

The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.

The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.

This report by The Canadian Press was first published Aug. 29, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Investment

Crypto Market Bloodbath Amid Broader Economic Concerns

Published

1 month ago

August 5, 2024

Harry Miller

The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.

The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.

Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.

The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.

Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.

Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.

Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.

Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.

The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.