As the third quarter ends and the final quarter of 2023 is about to begin, investors are examining their portfolios to see how their investments have done so far.
With persistent inflation, high interest rates and geopolitical conflicts creating uncertainty around the world, it is unsurprising that many fund managers may have seen their stock picks decline. Investing legend Warren Buffett (Trades, Portfolio) is no exception. While Berkshire Hathaway (BRK.A, Financial)(BRK.B, Financial) has been able to find value in this volatile environment, a few of its more recent purchases appear to have hit a bit of a speed bump.
According to 13F filings, the guru’s $348.19 billionequity portfolio consisted of 49 stocks as of June 30. A majority of the equity portfolio was invested in technology stocks at 53.25%, while the financial services sector has a weight of 21.86% and the consumer defensive space represents 10.94%.
During the second quarter, the conglomerate entered new positions in D.R. Horton Inc. (DHI, Financial), NVR Inc. (NVR, Financial) and Lennar Corp. (LEN.B, Financial). While these stocks have performed well year to date, they recorded declines in the most recent quarter.
Investors should be aware that 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.
D.R. Horton
Representing 0.21% of the equity portfolio, GuruFocus estimates Buffett has lost 1.76% on the 5.96 million-share stake in D.R. Horton (DHI, Financial) so far.
While the stock is up 21.18% year to date, the Arlington, Texas-based company recorded a 10.67% decline over the last three months.
The homebuilder has a $36.36 billion market cap; its shares were trading around $107.47 on Friday with a price-earnings ratio of 7.64, a price-book ratio of 1.68 and a price-sales ratio of 1.09.
The GF Value Line suggests the stock is modestly undervalued currently based on its historical ratios, past financial performance and analysts’ future earnings projections.
At 96 out of 100, the GF Score indicates the company has high outperformance potential. While it received high ratings for profitability, growth and financial strength, the value and momentum ranks are more moderate.
Of the gurus invested in D.R. Horton, Buffett has the largest stake with 1.76% of its outstanding shares. The Smead Value Fund (Trades, Portfolio), Glenn Greenberg (Trades, Portfolio) and the Parnassus Value Equity Fund (Trades, Portfolio) also have notable holdings.
NVR
Occupying just 0.02% of the equity portfolio, GuruFocus data shows the investor has gained around 2.62% on the 11,112-share holding of NVR (NVR, Financial).
Having risen nearly 30% year to date, the company’s stock has pulled back by 5.01% over the past quarter.
The home construction company, which is headquartered in Reston, Virginia, has a market cap of $19.47 billion; its shares traded around $5,963.30 on Friday with a price-earnings ratio of 12.73, a price-book ratio of 4.68 and a price-sales ratio of 2.10.
According to the GF Value Line, the stock is fairly valued currently.
The GF Score of 96 implies the company has high outperformance potential, driven by high ratings for profitability, growth and financial strength. The ranks for value and momentum are more moderate.
With a 2.98% stake, Diamond Hill Capital (Trades, Portfolio) is NVR’s largest guru shareholder. Other top guru investors include Smead, Tom Gayner (Trades, Portfolio), Jim Simons (Trades, Portfolio)’ Renaissance Technologies, Jefferies Group (Trades, Portfolio) and Ray Dalio (Trades, Portfolio)’s Bridgewater Associates.
Lennar
GuruFocus found the guru has gained around 3.56% on his investment in Lennar (LEN.B, Financial) Class B stock. He holds 152,572 shares.
Although the stock has recorded a gain of 38.57% year to date, it has fallen 8.33% over the past several months.
The Miami, Florida-based home builder has a $31.85 billion market cap; its Class B shares were trading around 102.23 on Friday with a price-earnings ratio of 7.58, a price-book ratio of 1.25 and a price-sales ratio of 0.96.
Based on the GF Value Line, the stock appears to be fairly valued currently.
The GF Score of 93 means the company has high outperformance potential on the back of solid ratings for profitability, growth and financial strength as well as more moderate value and momentum ranks.
Holding 0.22% of outstanding shares, Mario Gabelli (Trades, Portfolio) has the largest position in Lennar’s Class B stock. The stock is also being held by Third Avenue Management (Trades, Portfolio), Simons’ firm, Jefferies Group (Trades, Portfolio) and Ken Fisher (Trades, Portfolio).
