Open Letter To Warren Buffett
Dear Messers Buffett and Munger: Given your extensive cash position and your constant search for acquisitions of undervalued companies, I propose the following. You might consider diversifying your holdings with a truly world class company in Newmont Mining (NEM) currently at a market capitalization of approximately $48 billion. Given a 50% premium lets say a price tag around $70-75 billion. The company is well worth that but if that is too large of a bite, may I suggest a much smaller deal. Hecla Mining (HL) can be had for about $6 billion, even with a 100% premium of it’s current $3 billion market cap. Your team might want to consider these two excellent opportunities.
Seems he isn’t interested after his short excursion into Barrick in the summer of 2020 just as everyone was getting lathered up. Yes we know he played silver bug for a while before they underwrote SLV, but its rumored he had to sell in order for the ETF to be approved. Given that he apparently has spent his life trying to prove his dad was ill advised (his dad was a gold enthusiast) Warren suffers from extreme cognitive dissonance in regards to gold. One can hope for a conversion, but like his partner Charlie Munger says put this one in the too difficult basket. To me the odds are right up there with Trump going against the Vaxx
Aware of his history and public comments regarding gold. Believe he isn’t against metals and realizes value vs fiat, just can’t recommend publically. If he and his younger investment team found value in the businesses as long term operators I don’t believe he wouldn’t consider as a means of diversification. He would be wise to trim his Apple position.
Sure, jump into the precious metals pool and watch your $$ go up in smoke. Methinks Buffet is smarter than that.