Greenhaven Associates: Top 10 Stocks to Invest in

6. D.R. Horton, Inc. (NYSE:DHI)

Number of Hedge Fund Holders as of Q3: 69

Greenhaven Associates’ Equity Stake: $513.3 Million 

Based in Arlington, Texas, D.R. Horton, Inc. (NYSE:DHI) is the largest homebuilder in the U.S. by volume since 2002, operating in 113 markets across 33 states. Founded in 1978 by Donald R. Horton, the company went public in 1992 and has expanded through multiple significant acquisitions, including Continental Homes and Cambridge Homes. It offers four brands—D.R. Horton, Emerald Homes for luxury buyers, Express Homes for entry-level buyers, and Freedom Homes for active adults. Ranked among the largest U.S. corporations by revenue, the company experienced a leadership transition in 2024 following the passing of its founder, with David V. Auld appointed as executive chairman.

The company is the sixth-largest holding in Ed Wachenheim’s stock portfolio. Greenhaven Associates owns over 3.67 million shares of the company as of Q4 2024 which constitutes 7.59% of the hedge fund’s holding.

D.R. Horton, Inc. (NYSE:DHI) demonstrated strong financial performance for the quarter ended December 2024. The reported revenue of $7.61 billion for the quarter against consensus estimates of $7.08 billion indicates solid business growth. The earnings per share (EPS) for the quarter were a solid $2.61, which exceeded analyst estimates of $2.36 by a significant 11% and is a clear positive.

D.R. Horton, Inc. (NYSE:DHI) is a solid stock backed by strong institutional confidence, with 85% of shares held by major financial institutions, including The Vanguard Group as the largest shareholder as of Q4 2024. This high level of institutional ownership reflects credibility and stability, as these investors typically maintain investments in companies with solid fundamentals and promising performance. While D.R. Horton trades slightly below its industry peers, it remains a fairly priced investment with a high beta, offering opportunities for strategic entry. Despite moderate near-term earnings growth projections of 9.9%, the company’s dominant market position and long-term resilience make it a great addition to any portfolio.

Parnassus Core Equity Fund stated the following regarding D.R. Horton, Inc. (NYSE:DHI) in its Q3 2024 investor letter:

“D.R. Horton, Inc. (NYSE:DHI), a leading homebuilder, saw its shares rise amid confidence that a lower-rate environment would lead to more affordable housing prices and a corresponding increase in home buying. Further, investors were impressed by the company’s execution and management’s intention to deploy cash to a stock buyback.”