Warren Buffett’s Berkshire Loads Up On 3 Homebuilders

Forbes Money Investing Warren Buffett’s Berkshire Loads Up On 3 Homebuilders GuruFocus Contributor Opinions expressed by Forbes Contributors are their own. Following Aug 15, 2023, 05:07pm EDT | Press play to listen to this article! Got it! Share to Facebook Share to Twitter Share to Linkedin Summary Buffett entered positions in D. R.

Horton, NVR NVR and Lennar, while adding to Occidental and Capital One COF . He also sold out of three stocks, while trimming Activision ATVI Blizzard, Chevron CVX and several other stocks. Berkshire Hathaway Inc.

(BRK. A)(BRK. B), the multibillion-dollar conglomerate run by Warren Buffett ( Trades , Portfolio ), disclosed its equity portfolio for the second quarter of 2023 on Monday.

With a cash pile of around $150 billion to spend on stocks at the end of June, the renowned guru and his two portfolio managers, Ted Weschler and Todd Combs,dedicated a lot of cash to scaling up the investment in Occidental Petroleum OXY Corp. (OXY). It now owns 25.

33% of the company’s outstanding shares. Other notable buys for the quarter that were reported in the 13F filing included new positions in homebuilders D. R.

Horton Inc. ( DHI , Financial ), NVR Inc. ( NVR , Financial ) and Lennar LEN Corp.

( LEN. B , Financial ) as well as an increased bet on Capital One Financial Corp. ( COF , Financial ).

As for the sell side, Berkshire divested of the McKesson MCK Corp. ( MCK , Financial ), Marsh & McLennan MMC Companies Inc. ( MMC , Financial ) and Vitesse Energy Inc.

( VTS , Financial ) holdings. He also trimmed the investments in Activision Blizzard Inc. ( ATVI , Financial ), Chevron Corp.

( CVX CVX , Financial ), General Motors GM Co. ( GM , Financial ), Globe Life GL Inc. ( GL , Financial ) and Celanese CE Corp.

( CE , Financial ). MORE FOR YOU Apple Leaks Detail All-New iPhone 15, iPhone 15 Pro Design Changes New Apple Leak Reveals iPhone 15 Release Surprise Forget The New MacBook Pro Apple Has Something Much Better Investors should be aware 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U. S.

stocks and American depository receipts, but they can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published. Berkshire’s five largest holdings , accounting for over half of the equity portfolio, are Apple AAPL Inc.

( AAPL , Financial ), Bank of America BAC Corp. ( BAC , Financial ), American Express AXP Co. ( AXP , Financial ), Coca-Cola KO Co.

( KO , Financial ) and Chevron. The guru’s $348. 19 billion equity portfolio consisted of 49 stocks as of June 30.

Occidental Petroleum As previously disclosed, Buffett increased his Occidental Petroleum (OXY) stake by 5. 87% during the second quarter, buying 12. 42million shares.

The transaction had an impact of 0. 21% on the equity portfolio. The stock traded for an average price of $60.

03 per share during the quarter. The position currently occupies 3. 78% of the equity portfolio and is now his sixth-largest holding at 224.

13 million shares. He has gained approximately 21. 16% on the investment so far.

Buffett’s Occidental holding history GuruFocus. com The Houston-based oil and gas producer has a $57. 66 billion market cap; its shares were trading around $65.

18 on Monday with a price-earnings ratio of 11. 07, a price-book ratio of 2. 81 and a price-sales ratio of 2.

03. The GF Value Line suggests the stock is modestly overvalued currently based on historical ratios, past financial performance and analysts’ future earnings projections. Occidental’s GF Value Line GuruFocus.

com D. R. Horton The guru invested in 5.

97 million shares of D. R. Horton ( DHI , Financial ), allocating 0.

21% of the equity portfolio to the stake. Shares traded for an average price of $109. 16 each during the quarter.

The Arlington, Texas-based homebuilder has a market cap of $41. 71 billion; its shares were trading around $123. 28 on Monday with a price-earnings ratio of 8.

77, a price-book ratio of 1. 93 and a price-sales ratio of 1. 23.

According to the GF Value Line VALU , the stock is fairly valued currently. D. R.

Horton’s GF Value Line GuruFocus. com NVR The investor picked up 11,112 shares of NVR ( NVR , Financial ), dedicating 0. 02% of the equity portfolio to the position.

During the quarter, the stock traded for an average per-share price of $5,816. 26. The homebuilder, which is headquartered in Reston, Virginia, has a $20.

10 billion market cap; its shares were trading around $$6,158. 70 on Monday with a price-earnings ratio of 13. 15, a price-book ratio of 4.

83 and a price-sales ratio of 2. 12. Based on the GF Value Line , the stock appears to be fairly valued.

NVR’s GF Value Line GuruFocus. com Lennar Buffett entered a 152,572-share holding in Lennar ( LEN. B , Financial ).

The Class B stock traded for an average price of $98. 59 per share during the quarter. The Miami-based home construction company has a $35.

38 billion market cap; its Class B shares were trading around $112. 75 on Monday with a price-earnings ratio of 7. 70, a price-book ratio of 1.

44 and a price-sales ratio of 1. 05. The GF Value Line suggests the stock is fairly valued currently.

Lennar’s GF Value Line GuruFocus. com Capital One Financial The Oracle of Omaha increased the Capital One Financial ( COF , Financial ) stake by 25. 69%, buying 2.

55 million shares. The transaction impacted the equity portfolio by 0. 08%.

Shares traded for an average price of $100. 06 each during the quarter. Buffett now holds a total of 12.

47 million shares, which occupy 5. 56% of the equity portfolio. GuruFocus estimates he has gained 5.

24% on the investment to date. Buffett’s holding history of Capital One. GuruFocus.

com Headquartered in McLean, Virginia, the bank holding company has a market cap of $41. 64 billion; its shares were trading around $109. 16 on Monday with a price-earnings ratio of 8.

36, a price-book ratio of 0. 76 and a price-sales ratio of 1. 17.

According to the GF Value Line , the stock is modestly undervalued currently. Capital One’s GF Value Line. GuruFocus.

com Activision Blizzard The investor curbed the Activision Blizzard ( ATVI , Financial ) stake by 70. 35%, selling 34. 78 million shares.

The transaction had an impact of -0. 91% on the equity portfolio. During the quarter, the stock traded for an average per-share price of $81.

He now holds 14. 65 million shares, accounting for 0. 35% of the equity portfolio.

GuruFocus data shows Buffett has gained 8. 20% on the investment thus far. Buffett’s holding history of Activision.

GuruFocus. com The video game developer, which is based in Santa Monica, California, has a $71. 43 billion market cap; its shares were trading around $90.

79 on Monday with a price-earnings ratio of 33. 26, a price-book ratio of 3. 43 and a price-sales ratio of 8.

26. Based on the GF Value Line , the stock appears to be fairly valued currently. Activision’s GF Value Line GuruFocus.

com Chevron With an impact of -0. 47% on the equity portfolio, Buffett trimmed the Chevron ( CVX , Financial ) stake by 7. 01%, selling 9.

28 million shares. The stock traded for an average price of $160. 37 per share during the quarter.

He now holds 123. 12 million shares total, which represent 5. 56% of the equity portfolio.

GuruFocus says he has gained 23. 89% on the investment so far, which is his fifth-largest holding. Buffett’s holding history of Chevron.

GuruFocus. com The energy giant headquartered in San Ramon, California has a market cap of $312. 90 billion; its shares were trading around $164.

03 on Monday with a price-earnings ratio of 10. 40, a price-book ratio of 1. 94 and a price-sales ratio of 1.

47. The GF Value Line suggests the stock is fairly valued currently. Chevron’s GF Value Line GuruFocus.

com McKesson The guru sold his remaining 2. 28 million shares of McKesson ( MCK , Financial ), impacting the equity portfolio by -0. 25%.

Shares traded for an average price of $383. 91 each during the quarter. GuruFocus found he gained an estimated 37.

30% on the investment over its lifetime. Buffett’s holding history of McKesson GuruFocus. com The Irving, Texas-based health care company has a $59.

09 billion market cap; its shares were trading around $438 on Monday with a price-earnings ratio of 16. 34and a price-sales ratio of 0. 22.

According to the GF Value Line , the stock is modestly overvalued. McKesson’s GF Value Line GuruFocus. com Marsh & McLennan Buffett divested of his 404,911-share investment in Marsh & McLennan ( MMC , Financial ), which impacted the equity portfolio by -0.

02%. During the quarter, the stock traded for an average per-share price of $177. 28.

GuruFocus data shows he gained around 36. 51% on the investment. Buffett’s holding history of Marsh & McLennan GuruFocus.

com The insurance company, which is headquartered in New York, has a market cap of $94. 94 billion; its shares were trading around $192. 20 on Monday with a price-earnings ratio of 29.

34, a price-book ratio of 7. 94 and a price-sales ratio of 4. 46.

Based on the GF Value Line , the stock appears to be fairly valued. Marsh & McLennan’s GF Value Line GuruFocus. com See the rest of Buffett’s portfolio here .

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Follow me on Twitter . GuruFocus Editorial Standards Print Reprints & Permissions.