Berkshire Hathaway has increased its stake in DR Horton (NYSE: DHI), the largest U.S. homebuilder by volume, to 10.8% as of the end of March, regulatory filings show.
The Omaha-based conglomerate, led by Warren Buffett, disclosed the position in a 13F filing with the U.S. Securities and Exchange Commission. The stake, valued at approximately $2.8 billion based on DR Horton’s closing price on March 31, marks an increase from the 9.3% holding reported in the prior quarter.
DR Horton reported first-quarter earnings on Jan. 23, posting a net income of $1.1 billion, or $3.79 per share, up from $943 million, or $3.01 per share, in the same period a year earlier. Revenue rose 12% to $8.1 billion, driven by a 10% increase in home sales and higher average selling prices.
The company delivered 24,300 homes in the quarter, up from 22,000 a year prior, as demand remained resilient despite elevated mortgage rates. DR Horton’s backlog of homes sold but not yet closed stood at 22,800 units at the end of December, with an average selling price of $415,000.
Analysts at J.P. Morgan maintained an Overweight rating on DR Horton in a note dated Feb. 13, citing the company’s strong balance sheet, land position, and operational efficiency. The firm’s price target was set at $225, implying a 15% upside from the stock’s closing price of $195.30 on April 5.
The housing market has faced headwinds from high mortgage rates, which averaged 6.82% for a 30-year fixed loan in March, according to Freddie Mac. Despite this, DR Horton has benefited from a limited supply of existing homes for sale, supporting demand for new construction.
Berkshire’s growing stake in DR Horton follows a pattern of selective investments in sectors Buffett has described as having durable competitive advantages. The homebuilding industry, while cyclical, has historically provided long-term value during periods of housing undersupply.
DR Horton’s shares have gained 12% year-to-date, outperforming the S&P 500 Homebuilding Index, which is up 8% over the same period.
