Berkshire Hathaway’s New Stake Might Change the Case for Investing in D.R. Horton (DHI)

• Berkshire Hathaway initiated a new stake in D.R. Horton during the second quarter of 2025, signaling confidence in the homebuilder amid ongoing U.S. housing shortages and lower mortgage rates.
• This move brings fresh attention to D.R. Horton, already the largest U.S. homebuilder by volume, and highlights increasing investor interest in companies positioned to benefit from demographic and market shifts.
• We'll explore how Berkshire Hathaway's investment could influence D.R. Horton's long-term outlook and the company's analyst-driven narrative.

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D.R. Horton Investment Narrative Recap

To own D.R. Horton shares today, investors have to believe in the company’s ability to capture demand driven by the persistent U.S. housing shortage, favorable demographics, and its focus on affordable home offerings. Berkshire Hathaway’s initiation of a position brings credibility, but does not materially change the most important short term catalyst, sustaining sales pace in a still-competitive, affordability-constrained market, or the biggest risk, which remains pressure on margins due to ongoing incentives and consumer caution.

Among recent company updates, D.R. Horton’s announcement of dates for upcoming 2026 financial results will be closely watched, particularly after quarters that showed declining sales and net income year-over-year. In this context, investor attention is likely to remain on whether the housing market’s recovery translates to improved pricing power and stabilizing margins.

By contrast, investors should also be aware that a prolonged need for high sales incentives could...

Read the full narrative on D.R. Horton (it's free!)

D.R. Horton's narrative projects $41.5 billion revenue and $4.7 billion earnings by 2028. This requires 6.2% yearly revenue growth and a $0.7 billion earnings increase from $4.0 billion today.

Uncover how D.R. Horton's forecasts yield a $164.80 fair value, a 7% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided seven fair value estimates for D.R. Horton, ranging from US$110 to US$164.80 per share. While many see opportunity amid the company’s scale and housing market position, ongoing margin pressure due to pricing competition remains a key concern you should consider as you compare these views.

Explore 7 other fair value estimates on D.R. Horton - why the stock might be worth as much as 7% more than the current price!

Build Your Own D.R. Horton Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your D.R. Horton research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free D.R. Horton research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate D.R. Horton's overall financial health at a glance.

No Opportunity In D.R. Horton?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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