Berkshire Hathaway Bets Big on Housing with Three New Moves

The Motley Fool··US·Read original
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Summary · why it matters

Berkshire Hathaway has made three significant moves that signal a major bet on the U.S. housing market, according to a report from The Motley Fool. In the second quarter, the company acquired homebuilder Taylor Morrison for $8.5 billion, increased its stake in Lennar by about 30%, and bought shares of D.R. Horton. These investments come on top of Berkshire's existing housing exposure, including Clayton Homes and Berkshire Hathaway Home Services. The moves suggest CEO Greg Abel is positioning for a housing recovery, despite the market being described as "frozen" by Home Depot's CEO. With a massive housing shortage and pent-up demand, the bet could pay off if interest rates decline.

Impact on assets 7

Consumer Discretionary▲
Taylor Morn Home
TMHC
▲ PositiveCapitalrelevance

Berkshire acquired Taylor Morrison for $8.5 billion, a direct investment.

DR Horton Inc
DHI
▲ PositiveCapitalrelevance

Berkshire bought shares of D.R. Horton, indicating confidence in the homebuilder.

Lennar Corporation
LEN
▲ PositiveCapitalrelevance

Berkshire increased its stake in Lennar by about 30%, a bullish signal.

Artificial Intelligence▲
Energy Transition & Power Demand▲

Off-coverage companies 1

Berkshire Hathaway HomeServicesi
Private± Mixedrelevance