Come on guys, I have read a handful of stories on this Barrick purchase by Buffett and I think every one of them got the story wrong. First of all, Warren Buffett buying something is the opposite of a confirmation of anything. When he reveals his purchases the trend is long gone. He probably bought the stock for an average price just above $20 and he did simple math to get into it. Gold miners, oil drillers, miners of any kind really are pretty simple math problems to solve. He saw that as long as gold held its price around the levels it was in April that the miners could yield a decent profit. That's it. There is nothing about how much should gold sell for, should gold rally, is gold price right today, etc. This is like a betting syndicate seeing some rule change in a sport and figuring out its worth a 1 or 2 a game and hitting the game in every book they can find until they think its been priced out. Then someone else figures it out and puts it on Vsin or wherever and next thing you know the followers have moved the line another 2 points.
Besides why is Buffett so important anyways? The guy follows the simplest methods ever, almost all covered in a book that was published in the 1930s. Further he's given about all the insight you need to know in all his letters over the years. Why do people get so fired up about his investments? Don't people understand he just ran lucky for a few decades and parlayed that into a big portfolio that now doesn't really outperform? The dude even tells you just put your money in S&P 500 and not my stock.