Buffett’s “Mystery Holdings” Revealed in Q2: Are Nucor, Lennar, and D.R. Horton Really His Bets?

TradingKey - In its latest 13F filing, Berkshire Hathaway, led by “the Oracle of Omaha” Warren Buffett, finally disclosed the “mystery holdings” it deliberately concealed in the first quarter: Nucor (NUE), Lennar (LEN), and D.R. Horton (DHI) — a move that may reflect a strategic bet on the recovery of the U.S. housing market.

On Thursday, August 14, after market close, Berkshire released its Q2 2025 portfolio holdings, unveiling the long-speculated “mystery stocks.” In the previous quarter’s filing, Berkshire had requested the SEC to keep these positions confidential, sparking market speculation that they were likely industrial stocks.

In Q2, Berkshire purchased 6.61 million shares of Nucor, the largest steel producer in the U.S., with a quarter-end value of $857 million, representing 0.33% of Berkshire’s portfolio and ranking as its 25th-largest holding. It also bought 7.05 million shares of Lennar and 1.48 million shares of D.R. Horton, the two largest homebuilders in the U.S.

The end-of-quarter values of these two real estate stocks were $780 million and $191 million, accounting for 0.3% and 0.07% of Berkshire’s holdings, respectively.

All three stocks are tied to the real estate sector, suggesting that Berkshire may be positioning for a recovery in the U.S. housing market. Buffett has prior experience in housing, having previously increased investments in Clayton Homes, the largest manufactured homebuilder in the U.S.

The U.S. housing market currently faces a disconnect between sales and prices: June existing-home sales fell to 3.9 million units, the lowest since September 2024, while the median price rose to a record $435,300.

Industry experts note that high prices and high interest rates are key reasons for delayed purchases, with declining affordability and a weakening labor market adding to macroeconomic headwinds.

However, the prospect of the Federal Reserve restarting rate cuts could boost home buying activity. President Donald Trump has previously stated that the Fed must cut rates quickly to support the housing market.

Close observers have noted a telling detail: given Buffett’s historical investment style, it is unlikely that he personally made the decision to invest in these three mystery holdings.

Barron’s pointed out that the total purchases of these three stocks over the past two quarters amount to less than $2 billion, a small sum relative to Berkshire’s $300 billion stock portfolio. The decision to keep such a relatively small investment confidential is a “mild surprise,” as Buffett typically focuses on multi-billion-dollar investments.

Therefore, these moves were likely made by Berkshire investment managers Todd Combs and Ted Weschler, who each manage about 10% of the portfolio and typically make decisions independently of each other and of Buffett.

ABC News echoed a similar view, noting that the low value of the new investments makes it unlikely these were direct Buffett-led decisions. In recent years, Buffett has indeed struggled to find large-scale investment opportunities for Berkshire’s $344 billion cash pile.