Warren Buffett's 'Mystery' $1.8 Billion Investment Is Finally Revealed Berkshire Hathaway kept the financial community guessing for months.
By David James
Key Takeaways
- In May, a 13-F filing from Berkshire Hathaway included confidential investments that the banking world has been eager to see.
- It was revealed that under Warren Buffett's leadership as CEO, Berkshire invested $1.8 billion in homebuilders D.R. Horton, Lennar and steel producer Nucor.
In May, Warren Buffett's Berkshire Hathaway filed a 13-F (a quarterly report disclosing a firm's holdings) that listed investments in what have been labeled "mystery stocks."
As Business Insider explains, big investors can ask for permission from the SEC to keep some aspects of their trading activity under the radar, giving them the ability to "quietly build large positions."
Related: Warren Buffett's Wealth Grew More After Turning 65
Since that 13-F filing, investors have been scrambling to learn what the Oracle of Omaha was backing, hoping to get in early. Well, the wait is finally over, and the company revealed the mystery investments. Prepare yourself, it isn't exactly sexy: Berkshire Hathaway announced it took a combined $1.8 billion stake in homebuilders DR Horton and Lennar, and steel producer Nucor.
Investor's Business Daily reports that Nucor traded up 6.2% to 153.34 before the open based on the news. DR Horton rose 3.1% and Lennar climbed 4.6%.
Other notable investments included Berkshire Hathaway buying more than five million shares in UnitedHealth last quarter for a stake worth about $1.6 billion.
In May, 94-year-old Buffett announced that stepping down as Berkshire CEO at the end of the year but would stay on as chairman of the board. Greg Abel, Berkshire's current vice chairman of non-insurance operations, will take over as CEO.
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