Warren Buffett’s 10 New Stock Picks

7. NVR Inc (NYSE:NVR)

Shares held by Berkshire Hathaway: 11,112 shares

Stake Acquired: Q2 2023

Another one of Warren Buffett’s bets on the US housing market that proved fruitful is NVR Inc (NYSE:NVR), in which the Oracle of Omaha acquired a position in the second quarter of last year. NVR Inc (NYSE:NVR) operates in two segments: homebuilding and mortgage services.

NVR Inc (NYSE:NVR) is already benefiting from the housing shortage as it saw a 13% growth in new orders and a 12% increase in backlog (houses sold but not yet settled with customers) last year. For the latest quarter, NVR reported a 19% increase in new orders and a 9% increase in backlog. Nevertheless, NVR Inc (NYSE:NVR) missed analysts’ expectations with both EPS of $130.50 and revenue of $2.68 billion coming in slightly lower than projected.

Going forward, if mortgage rates continue to decline, NVR Inc (NYSE:NVR) stands to benefit from more sales, while its mortgage business can see a higher volume of loans. On the other hand, analysts are currently cautious about the stock’s short-term performance, with most maintaining a Hold or Neutral rating on the stock.