Warren Buffett’s Berkshire Hathaway (BRK.A) (BRK.B) added new positions in U.S. homebuilders D.R. Horton (NYSE:DHI), Lennar (NYSE:LEN) and NVR (NYSE:NVR) in the second quarter. The news of Buffett gaining exposure to these homebuilder companies moved DHI, LEN, and NVR shares higher by 3%, 2.1%, and 1.7%, respectively, in Monday’s extended trading session.
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Berkshire Builds Positions in Homebuilders
As per Berkshire’s latest 13-F filing with the Securities and Exchange Commission (SEC), Berkshire owned 5.97 million DHI shares worth $726 million, 152,572 LEN shares worth $17.2 million, and 11,112 NVR shares that had a value of $70.6 million as of the end of June 2023.
A dearth of existing homes for sale and robust demand have caused a surge in the construction of new homes, triggering a rally in homebuilders’ stocks. Shares of D.R. Horton, Lennar, and NVR have risen 38%, 37%, and 34%, respectively, year-to-date.
Investors are likely to pay attention to Buffett’s interest in these stocks, given that Berkshire operates one of the leading residential real estate brokerage businesses. Wall Street analysts have a Moderate Buy consensus rating on DHI and LEN, while they are sidelined on NVR.
Berkshire – A Net Seller of Stocks in Q2 2023
Berkshire purchased about $4.6 billion of stocks in Q2 2023, up from nearly $2.9 billion worth of stocks bought in the first quarter. However, the firm was a net seller of stocks in the second quarter, selling shares worth $12.6 billion. Berkshire ended Q2 2023 with $147.4 billion in cash and cash equivalents.
While Berkshire increased its positions in Occidental Petroleum (NYSE:OXY) and Capital One Financial (NYSE:COF), it trimmed its stake in Chevron (NYSE:CVX), Activision Blizzard (NASDAQ:ATVI), Celanese (NYSE:CE), General Motors (NYSE:GM) and Globe Life (NYSE:GL).
Additionally, Berkshire exited its investments in healthcare group McKesson (NYSE:MCK), insurer Marsh & McLennan (NYSE:MMC), and Vitesse Energy (NYSE:VTS).
The market value of Berkshire’s equity portfolio based on the latest 13-F filing was $348.2 billion as of the end of Q2 2023, up 7% compared to $325.1 billion as of the end of the first quarter.
As of Q2-end, Apple (NASDAQ:AAPL), Bank of America (NYSE:BAC), American Express (NYSE:AXP), Coca-Cola (NYSE:KO), and Chevron were the top five holdings and accounted for 80% of Berkshire’s overall stock portfolio.
Using TipRanks’ Stock Comparison Tool, let’s have a look at Wall Street’s ratings for Berkshire’s top five holdings.
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