Warren Buffett spent decades telling Berkshire Hathaway shareholders that stocks beat real estate, citing the complexity of multiple parties and messy deals. Five months into his tenure as CEO, Buffett successor Greg Abel appears to be betting on a housing market recovery instead.
Berkshire disclosed its April-through-June stockholdings in a recent regulatory filing, confirming the closed acquisition of homebuilder Taylor Morrison for $6.8 billion and a nearly 30 percent increase in its stake in Lennar, according to MarketWatch. The company also bought a small, new stake in D.R. Horton, purchasing 3,564 shares after unwinding a larger position in the builder last year.
A housing market recovery bet amid affordability concerns
The moves come as Americans face concerns about the housing market, including rising mortgage rates and a lack of affordability.
D.R. Horton’s own outlook reflects that caution. David Auld, the company’s executive chairman, said in its fiscal third-quarter earnings release last month that affordability constraints and cautious consumer sentiment continue to weigh on new-home demand.
D.R. Horton, the top U.S. homebuilder by both revenue and market capitalization, cut its 2026 revenue guidance to between $32.5 billion and $33 billion, down from a previous range of $33.5 billion to $34.5 billion.
Berkshire’s own housing bet suggests the company is positioning for a longer-term housing market recovery rather than reacting to near-term demand.
A broader spending quarter beyond the housing rebound
Berkshire reported second-quarter earnings on Aug. 8, showing profit that more than doubled during the period, according to MarketWatch. The company also began spending down its cash pile, which fell by $31.9 billion to $365.5 billion; the Taylor Morrison acquisition was part of that spree.
Housing wasn’t the only sector where Berkshire added to its holdings. The company increased its stake in Delta Air Lines by about 44 percent and grew its Alphabet position by more than 600 percent, though the Alphabet stake remained small in dollar terms at about $38 million, according to the reporting. Berkshire also more than doubled its position in Macy’s, a stake it first added in May alongside Delta, and sold off its investment in Constellation Brands, which produces beer, wine and spirits, entirely.
Abel finds his footing
The moves are the second quarter of stock trading under Abel, who became CEO in January following Buffett’s retirement after 60 years leading the company. Buffett remains Berkshire’s chairman.
In a letter to shareholders, Abel said Berkshire would continue a “concentrated approach” to stock investing, according to MarketWatch. Abel has also worked to frame Berkshire’s sizable cash reserve as strategic rather than defensive.
In his first annual shareholder letter as CEO, he called the company’s roughly $373 billion cash position “dry powder,” writing that the balance sheet is “a strategic asset to be deployed at the right time,” the Associated Press reported.
Buffett, who stepped down as CEO at the end of 2025, previously said he generally preferred stocks over real estate investments. “It’s so much harder than stocks in terms of negotiation of deals, time spent and the involvement of multiple parties in the ownership,” Buffett said at Berkshire’s 2025 annual meeting.
Existing footprint bolsters the housing market recovery bet
Berkshire already holds significant housing exposure beyond the new moves. The company owns Clayton Homes, the leading manufactured homebuilder, and Berkshire Hathaway HomeServices, one of the largest real estate brokerages in the country. Combined with its latest stock moves, that footprint positions Berkshire to benefit broadly if a housing market recovery takes hold.
