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Identifying the best stocks to buy can be difficult, but one source of inspiration for investors is Warren Buffett, one of the world’s savviest hedge fund managers. Known as the “Oracle of Omaha,” Buffett’s stock-picking ability has earned him a fortune of approximately 7 billion, making him one of the richest people in the world. His firm, Berkshire Hathaway, is also considered one of the most successful with total assets of over trillion.

During the second quarter, Buffett opened new positions in a few homebuilding stocks, specifically D.R. Horton and Lennar Corporation. As a value investor, Buffett most likely sees these stocks as offering good value at the moment. Analysts at Raymond James also share this sentiment and believe that these stocks have the potential to deliver double-digit growth over the next year.

D.R. Horton, Inc. is a Texas-based construction firm and a leader in the US homebuilding industry. With over 45 years of experience, D.R. Horton has closed over 1 million building contracts and operates in 113 residential markets across 33 states. The company focuses on both single-family homes and multi-family apartment complexes, offering a portfolio of designs in various price ranges.

Despite facing real estate headwinds, D.R. Horton has shown resilience. While earnings have been down year-over-year for several quarters, revenues have consistently increased. In the recently reported results for Q3 of fiscal 2023, D.R. Horton exceeded expectations both in terms of revenue and earnings. The company closed on 22,985 homes, marking an 8% increase from the previous year, and its net sales orders were up an impressive 37% year-over-year.

Warren Buffett’s firm, Berkshire Hathaway, opened a new position in D.R. Horton during the second quarter, acquiring 5,969,714 shares worth approximately 0 million.

Lennar Corporation, another major US homebuilder, is based in Florida and operates in various regions across the country. Lennar has built over 1 million homes since its founding in 1954 and has a strong presence in the new-home industry. The company controls multiple brands and provides a range of services to buyers, including financing and insurance.

While Lennar’s total revenues in 2022 exceeded billion, the company has shown a slight decline in its most recent quarter. However, its second-quarter earnings and revenues still beat estimates. Lennar delivered 17,074 homes during this period and had new orders for 17,885 homes, amounting to .2 billion in value.

It is important to note that these are just some of the stocks that Warren Buffett has invested in, and investors should conduct their own research and analysis before making any investment decisions.

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