Warren Buffett’s Berkshire Hathaway is putting investment dollars into three homebuilding companies despite the industry’s sluggish recovery since the pandemic.
A filing with the Securities and Exchange Commission (SEC) released on Monday shows Berkshire Hathaway now owns roughly 5.7 million shares of D.R. Horton, over 11,000 shares of Ryan Homes’ parent company NVR. Berkshire Hathaway also took in over 152,000 shares of the home construction company Lennar.
The investment announcement comes with a housing market weakened by falling home sales and mortgage increases.
On Tuesday, data compiled by the National Association of Home Builders/Wells Fargo Housing Market Index, which measures the pulse of the single-family housing market, showed confidence among builders in the U.S. housing market unexpectedly plunged in August as a spike in mortgage rates dampened consumer demand for new homes.
The index fell to a three-month low.
On Wall Street, shares of D.R. Horton are up on Tuesday, after rising roughly 13.5% the last quarter. Shares of Lennar and NVR are also up, after moving up around 10.7% and 5.1% over the last three months, respectively.
FOX Business reporter Megan Henney contributed to this report.