In this article, we discuss 5 best performing Warren Buffett in 2023. If you want to read our discussion on Buffett’s investment journey, head over to 11 Best Performing Warren Buffett Stocks in 2023.
5. D.R. Horton, Inc. (NYSE:DHI)
YTD Share Price Performance as of November 26: 40.58%
Berkshire Hathaway’s Stake Value: $641,565,163
D.R. Horton, Inc. (NYSE:DHI) is a homebuilding company in the United States, which is involved in acquiring and developing land, as well as constructing and selling residential homes. The homes are marketed under different names, including D.R. Horton, America’s Builder, Express Homes, Emerald Homes, and Freedom Homes. D.R. Horton, Inc. (NYSE:DHI) is set to pay a $0.30 per share quarterly dividend on November 28, to shareholders on record as of November 21.
Securities filings for Q3 2023 reveal that Warren Buffett held nearly 6 million shares of D.R. Horton, Inc. (NYSE:DHI) worth $641.5 million. It is one of the best performing Buffett stocks.
According to Insider Monkey’s third quarter database, 64 hedge funds were bullish on D.R. Horton, Inc. (NYSE:DHI), compared to 54 funds in the prior quarter. Rajiv Jain’s GQG Partners is a prominent stakeholder of the company, with 3.8 million shares worth $412 million.
Baron Real Estate Fund made the following comment about D.R. Horton, Inc. (NYSE:DHI) in its second quarter 2023 investor letter:
“Our investments in homebuilder companies – Toll Brothers, Inc., Lennar Corporation, and D.R. Horton, Inc. (NYSE:DHI) – performed well in the first six months of 2023. The share price of Toll Brothers increased nearly 60% and the shares prices of Lennar and D.R. Horton each gained more than 35%.
Year-to-date, each company has witnessed a meaningful uptick in demand to buy homes:
- Home buyers continue to come off the sidelines and buy homes despite 30-year mortgage rates remaining in the 6.5% to 7.0% range. Several factors are contributing to the recent strength, including pent-up demand to buy homes and fears that mortgage rates could move higher. • The sticker shock of rapidly rising mortgage rates appears to have cooled down. Homebuilders have made homes more affordable to prospective home purchasers by offering mortgage rate buydowns to the mid-5% mortgage rate range while maintaining strong profitability margins. • A dearth of inventory in the existing home market and an overall housing supply shortage is driving home buyers to “stretch their wallet” due to fears that they could miss the opportunity to buy a home.
We remain optimistic about the long-term potential for the Fund’s investments in Toll Brothers, Lennar, and D.R. Horton for several reasons…” (Click here to read the full text)
