Warren Buffett might step down as CEO of Berkshire Hathaway by the end of this year, but the investment choices made by the conglomerate still provide insight into the economic outlook of Omaha.
This year, Berkshire has concentrated its investments in brands that show a clear connection to consumer health and overall prospects. Surprisingly, American shoppers have been managing quite well since the pandemic’s end. Brian Moynihan, CEO of Bank of America, mentioned earlier that while consumers are becoming a bit anxious about their savings, they’re still willing to spend.
Meanwhile, while Wall Street and tech hubs are diving into AI stocks despite bubble concerns, Buffett and his potential successor, Greg Abel, are looking elsewhere for investment opportunities.
Some of the major investments Berkshire has made this year target brands viewed as essential to U.S. consumers or those aligned with their long-term aspirations.
Take, for instance, Berkshire’s substantial increase in shares of Lennar Corporation—now up to around 7 million shares, a hike of 265%. Lennar, one of the largest home builders in the country, has experienced a 28% drop in its stock over the past year. Yet, it now constitutes over 3% of Berkshire’s portfolio, with a combined valuation of Class A and B shares exceeding $886 million.
The administration has been working this year to revitalize America’s real estate sector. President Trump criticized Federal Reserve Chairman Jerome Powell for negatively affecting the housing market, arguing he’s hindering mortgage access for many.
Initially, Powell refrained from cutting interest rates at the start of Trump’s term, but the Federal Open Market Committee has since begun reducing rates and appears open to further reductions. While the federal funds rate doesn’t directly determine what lenders charge for mortgages, lower borrowing costs are expected to eventually lead to reduced mortgage prices for consumers.
This financial landscape is rooted in an ongoing supply and demand issue: there’s a noticeable lack of available housing. According to a 2025 survey by the U.S. Chamber of Commerce, the nation is facing a “severe” shortage of over 4.7 million housing units.
The report notes that factors like tariffs are exacerbating the situation: “Despite increased demand, rising costs and limited supply are hindering new home construction. This underscores the need for resilient solutions that support the supply chain and foster growth in the housing sector.”
Focus on Consumables
Berkshire also increased its investment in Chevron, adding 3.45 million shares in the second quarter. The oil and gas sector has struggled in recent years, partly due to Russia’s invasion of Ukraine and subsequent supply issues. However, in the U.S. market, gasoline and fuel oil prices remain relatively stable compared to other energy commodities.
Bank of America noted that gas prices contributed significantly to spending growth last month, marking its role in around a third of the overall increase in consumer purchases, especially following a period of reduced spending earlier this year.
Additionally, Berkshire boosted its ownership in Constellation Brands, a beverage company, significantly increasing its shares from about 5.6 million at year’s end to around 12 million valued at $2.2 billion through March. Interestingly, while there’s a broader trend of shifting away from alcohol, Constellation is expanding its offerings in low- and no-alcohol products.
