On Monday, Berkshire Hathaway, the investment firm led by billionaire Warren Buffett, disclosed its investments in three major U.S. homebuilders: D.R. Horton, Lennar, and NVR. The investments, which were made in the second quarter of 2023, are worth a total of about $800 million.
The investments come at a time when the U.S. housing market is starting to cool after a period of rapid growth. Home prices have been rising steadily for several years, and mortgage rates have been increasing as well. However, Berkshire Hathaway appears to be betting that the housing market will remain strong in the long term.
D.R. Horton is the largest homebuilder in the United States, with operations in 79 markets. Lennar is the second-largest homebuilder, with operations in 20 markets. NVR is the third-largest homebuilder, with operations in 15 markets.
All three companies are well-positioned to benefit from the long-term growth of the U.S. housing market. They have strong track records of building quality homes, and they have access to a large pool of potential customers.
The investments by Berkshire Hathaway are a vote of confidence in the U.S. housing market. Buffett is known for his long-term investing approach, and he is not likely to make these investments unless he believes that the housing market is poised for continued growth.
It remains to be seen whether Berkshire Hathaway’s bet on the housing market will pay off. However, the investments are a sign that Buffett believes that the U.S. housing market is still a good place to invest.