In Q2, Berkshire opened stakes in D.R. Horton(DHI), Lennar (LEN) and NVR (NVR) worth a combined $814 million, its latest 13F filing on Monday showed.
Apparently Warren Buffett, as evidenced by his company Berkshire Hathaway’s purchases of homebuilder companies’ stocks for close to 1 billion USD, seems to think the US economy is doing relatively well.
Or in any case not so bad as the majority of Wall Street analysts think, given most of them until recently predicted mild, some deep economic recession.
One caveat from Warren Buffett’s homebuilder stocks buying is that the ‘Oracle of Omaha’ expects commodities prices to recover and rise. Simply because copper, tin, iron, steel, silver, gold even go into the building materials with which homes are made.
And people buy homes when they think the economy is doing OK, at least. This means the demand for oil is bigger than expected, which could translate into higher oil and natural gas prices, thank Street currently forecasts.
In support of the above, Berkshire Hathaway has invested months ago billions of USD in Japan’s five biggest commodities trading companies.
In short, Warren Buffett seems to think better of the US economy’s prospects than Wall Street research analysts.
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