NVR - Warren Buffett Just Bought 3 Homebuilder Stocks. Here's Why I Think This One Could Be Even Better Than Buffett's.
2023-08-28 06:11:00 ET
When Warren Buffett-led conglomerate Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) recently released an updated look at its massive stock portfolio, we learned that Buffett and his team added shares of not one, but three different homebuilders. Berkshire bought D.R. Horton (NYSE: DHI) , NVR (NYSE: NVR) , and Lennar (NYSE: LEN) , with a combined investment value of nearly $800 million.
While these are all excellent homebuilders with strong track records of growth, as well as attractive valuations, there's one homebuilder stock I've been buying in my own portfolio that I believe could perform even better for patient long-term investors. Here's a rundown of why Buffett might be so attracted to homebuilder stocks right now, and why I prefer to invest in the homebuilding industry with smaller player Dream Finders Homes (NYSE: DFH) instead.
Let's not sugar-coat it. The real estate market in the United States is pretty bad right now. A combination of soaring home prices and mortgage rates at multi-decade highs has pushed many would-be homebuyers to the sidelines.
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Warren Buffett Just Bought 3 Homebuilder Stocks. Here's Why I Think This One Could Be Even Better Than Buffett's.