Berkshire Hathaway Is Betting On US Housing Market: Buffett Bought These Stocks, Should You?

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Zinger Key Points
  • Berkshire Hathaway doubles down on housing with fresh stakes in DHI, NVR, LEN.
  • Amidst climbing mortgage rates, Berkshire's homebuilder bet may signal brighter days ahead for the sector.

Warren Buffett's Berkshire Hathaway introduced new stakes in D.R. Horton Inc, NVR Inc, and Lennar Corp last quarter according to a recent 13F filing

Did you notice the surge in some homebuilder stocks on Monday during the aftermarket session? The reason behind this jump is Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B). Let’s delve into the details.

Apple Inc AAPL, a favorite of Warren Buffett, continues to be Berkshire’s largest holding, valued at just over $177.5 billion, according to Berkshire’s latest 13F filing.

Last quarter, Berkshire introduced new stakes in D.R. Horton Inc DHI, NVR Inc NVR, and Lennar Corp LEN, With whispers of rising mortgage rates and potential repercussions, Berkshire’s decision to further invest in the U.S. housing market could signal that the market has reached its bottom.

It's not Berkshire's first dance with the housing market, either. Remember the acquisition of Clayton Homes two decades ago for $1.7 billion and its ongoing ownership of Benjamin Moore?

Buffett's Berkshire picked up nearly 6 million shares of DHI, 11,000 shares of NVR, and nearly 153,000 shares of Lennar.

Read also: Coatue Management Bullish On AI, Electric Vehicles In Q2 While Cautious On Chinese Equities

Investors should keep an eye on homebuilding ETFs like the SPDR S&P Homebuilders ETF XHB, and iShares US Home Construction ETF ITB in the coming weeks.

While the emphasis is on homebuilders, there’s also been a reshuffling of other equities.

Berkshire upped the ante in Capital One Financial Corp COF by 25% and gave a nod to Occidental Petroleum Corp OXY with a 5% increase. However, it wasn’t all additions; Activision Blizzard Inc ATVI and Globe Life Inc GL saw stakes reduced by 70% and 60%, respectively.

And, Berkshire completely exited its positions in Vitesse Energy Inc VTS, McKesson Corp MCK, and Marsh & McLennan Companies Inc MMC this quarter.

Read next: ‘The Big Short’ Investor Is Going Big Short: Burry’s 13F Says The Bull Run Of 2023 Is Over With 40,000 Puts On The SPY, QQQ

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Posted In: Large CapLong IdeasMid CapNewsSector ETFsSpecialty ETFsHedge FundsTopicsMarketsTrading IdeasETFsGeneralReal EstatehomebuildersHousingWarren Buffett