1 Warren Buffett

Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO and Chairman Warren Buffett needs no introduction. Buffett has been bringing market returns to Berkshire shareholders for sixty years. Sadly, by the end of this year, Buffett, 94, will step down as head of Berkshire and hand over the Ins rope to his vice chairman of non-insurance operations, Greg Abel. Buffett will continue to serve as chairman of the board.

Although it is still possible for Buffett to be involved in some capacity, he may reduce his participation in stocks. So if you want an investment like Buffett, there is still some time to remove a page from Omaha’s script Oracle. There is always time to learn from Buffett’s mistakes.

This is Buffett stock, which can avoid fists, and there is one fist to avoid.

Buffett and his team of stock pickers receive enough honors for successfully buying iconic stocks apple,,,,, Bank of Americaand Coca Cola. But I think Buffett doesn't have enough credit for Berkshire's buying stocks from Chinese electric vehicle (EV) companies Bit (OTC: Yes). Buffett is old, but he has never adapted to new trends in the market. In 2008, he foresaw moving to electric vehicles and directed Berkshire to buy about $230 million in Berkshire's stock. According to multiple media outlets, his investment is now worth between $6 billion and $8 billion, which means Berkshire has caused many multiples in the company's initial investment in the company.

Image source: Motley Fool.

American electric car manufacturers Tesla Having been focusing on for some time, many in the United States may not have discovered Byd until recently, as its cars are not for sale here. But recently, Bider has outperformed Tesla. The company now controls more than 30% of the electric vehicle market in China. Byd seems to do this only by creating better products. Byd sells cheaper models than Tesla, and Tesla can charge longer ranges in a shorter time. Byd, which also makes hybrid cars, has an annual revenue of $100 billion in Eclipse Tesla's in 2024.

Despite the poor performance, Tesla trades at a higher revenue multiple. There are many reasons for this, including investor enthusiasm for future plans, such as Tesla’s All Autonomous Driving (FSD) technology and its Optimus robot, which are said to be able to do housework for people. But Byd also works on his own FSD technology.

It's hard to know if the company can compete with Tesla or any car company can successfully commercialize FSD, but I'm even more excited about Byd's Core EV business. There is still plenty of room to run in the core market, especially if you think the company is only starting to sell its products worldwide. By 2030, management aims to sell half of its units outside China. For these reasons, I think the valuation gap between Bied and Tesla may narrow.

TSLA PE comparison
YCHARTS data.

Berkshire also owns B-class shares worth less than $16 million Lenar (NYSE: LEN.B). Lennar is one of the largest home builders in the United States, and also offers residential and commercial loans, offers title insurance and closure services, develops multi-family residential properties, and sponsors other funds and joint ventures. The company operates in more than 20 states.

Generally speaking, home builders face potential challenges this year as mortgage rates remain high and consumer housing demand remains weak. Some experts believe that house prices will eventually start to fall this year, but affordability remains a challenge, and it is unclear where consumers and the economy will move forward this year. The labor market seems to be in trouble, but other data suggest consumer weaknesses. In addition, tariffs can increase material costs and a wider structure.

During Lennar's first-quarter earnings call, management said that due to the Trump administration's immigration policy, the fees of its tariffs had no impact and there was no labor disruption. However, the company's second-quarter guidance on gross margin of 18% disappointed investors and analysts.

Evercore ISI analyst Stephen Kim said in a study noted that his disappointment management would not lower production to reflect lower volumes. “As long as market conditions remain, Lennar’s strategy of maintaining and incentivizing volumes will keep their profitability at a very high level of frustration,” King wrote. “So much that the pressure created by ROE will completely offset the benefits of its recent Millrose property derivatives.”

Ultimately, I think the industry will face a headwind until the housing market situation improves. Investors can now find better places to allocate their capital.

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Bank of America is an advertising partner for Motley Fool Money. Bram Berkowitz has no position in any of the stocks mentioned. Motley Fool is in the position and recommends Apple, Bank of America, Berkshire Hathaway, Lenard and Tesla. Motley Fool recommends Byd Company. Motley Fool has a disclosure policy.

1 Warren Buffett