10 Best Performing Warren Buffett Stocks in 2024

7. NVR, Inc. (NYSE:NVR)

Warren Buffett’s Q2 2024 Stake: $84.32 Million

Year to Date Gain as of September 20: 38.61%

Number of Hedge Fund Investors In Q2 2024: 47

NVR, Inc. (NYSE:NVR) is a home-building company specializing in constructing and selling single-family detached homes, townhomes, and condominiums. The stock has powered to all-time highs following a 38.61% year-to-date gain, affirming why it is one of the best-performing Warren Buffett stocks in 2024.

The outperformance underlines a period of outstanding growth in the home construction sector poised to receive a significant boost in a lower interest rate environment. NVR, Inc. (NYSE:NVR)’s impressive performance coming at one of the most challenging economic environments characterized by high interest rates has made it a standout investment play in the real estate sector

Amid the challenging business environment, the home builder posted a 1% decline in net income that totaled $400.9 million. Nevertheless, revenue was up 12% yearly to $2.61 billion, and homebuilding revenues totaled $2.55 billion.

While NVR, Inc. (NYSE:NVR) does not pay dividends, it returns value to shareholders through buybacks. It increased its buyback program to $639 million in the second quarter. It should continue to generate more free cash flow to support share repurchases, given that it operates in regions with scarce resale inventory and rising home prices. It currently has over $3 billion in net cash to return to shareholders.

47 hedge funds had stakes in NVR, Inc. (NYSE:NVR), with total positions worth $878.38 million in the second quarter of 2024. With 56,728 shares worth $430.48 million, Diamond Hill Capital is the most dominant shareholder in the company, as of June 30, 2024.

Artisan Partners commented on NVR, Inc. (NYSE:NVR) in its first quarter 2024 investor letter:

“Notable adds in the quarter included Xylem, NVR, Inc. (NYSE:NVR) and Equifax. NVR is a highly productive, build-to-order homebuilder with a land-light strategy that operates in the mid-Atlantic, Northeast, Southeast and Midwest regions. The company uses land options rather than land purchases in its lot development, meaning it can simply focus on building homes and walk away from lots should the environment change (which has proven to be an effective risk management approach over time). The housing cycle continues to be favorable for homebuilders from both a supply and demand perspective. Demographic trends (household formation) support demand while supply is constrained due to a low rate of housing starts and depressed existing home sales (since many existing homes are financed with below-market interest rates). We added to the position on signs of homebuilder orders accelerating.”