Berkshire Hathaway, the conglomerate spearheaded by the esteemed billionaire Warren Buffett, recently unveiled its latest investments in the homebuilding industry. The company, known for its extensive equity portfolio valued at $353.4 billion as of June 30, has disclosed these investments in a regulatory filing. Despite a slowdown in Berkshire’s homebuilding and remodeling businesses during the second quarter, primarily due to increased interest and mortgage rates dampening demand, the company believes the low inventory of existing homes for sale may bring about a favorable environment for homebuilders.
According to the filing, as of June 30, Berkshire holds approximately 5.97 million shares of DR Horton, valued at $726.4 million, around 153,000 shares of Lennar, valued at $17.2 million, and 11,112 shares of NVR, worth $70.6 million. Historically, larger investments are typically attributed to Warren Buffett himself, prompting other investors to follow suit and capitalize on the opportunities Berkshire presents.
The filing does not explicitly distinguish between Buffett’s personal investments and those managed by portfolio managers Todd Combs and Ted Weschler. This lack of clarity has not deterred investors from trying to replicate Berkshire’s investment moves, a testament to Buffett’s renowned reputation as an astute investor. This enthusiasm has already reflected positively in the after-hours trading of DR Horton and Lennar, with respective increases of 2.8% and 2%. However, NVR’s shares, priced above $6,000, tend to trade more thinly.
In addition to its recent investments, Berkshire possesses an extensive portfolio of operating businesses, including Geico car insurer, BNSF railroad, various energy, utility, and industrial companies, as well as consumer brands such as Dairy Queen, Duracell, Fruit of the Loom, and See’s Candies.
Despite these new investments, Berkshire’s activity in the second quarter saw them primarily selling stocks, with purchases amounting to $4.6 billion and sales totaling $12.6 billion. Notably, 45% of Berkshire’s stake in General Motors was sold, resulting in a 1% decline in its shares after hours. Throughout the year, Berkshire has sold $18.4 billion more stocks than it has purchased. One noteworthy exception to this trend is Berkshire’s substantial stake in Apple, valued at $177.6 billion, undoubtedly their largest stock holding.
Other second-quarter changes disclosed in the filing include Berkshire’s increased stake in Capital One, reduced holdings in Celanese and Globe Life, and exiting positions in Marsh & McLennan, McKesson, and Vitesse Energy.
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