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Want more housing market stories from Lance Lamberts ResiClub in your inbox? Subscribe to the ResiClub newsletter. Back in his 1996 letter to shareholders, Warren Buffett famously wrote: If you arent willing to own a stock for 10 years, dont even think about owning it for 10 minutes. That statement only makes the recent homebuilder stock purchases and sales by Berkshire Hathawayled by Buffett, who will step down as CEO at the end of 2025even more eyebrow-raising. Heres the timeline. August 2023: Berkshire Hathaway disclosed that in Q2 2023, the company made a bet on U.S. homebuilders and bought 5,969,714 shares of D.R. Horton, 152,572 shares of Lennar, and 11,112 shares of NVR. February 2024: Berkshire Hathaway disclosed that in Q4 2023, the company had sold off 5,969,714 shares of D.R. Hortonthe vast majority of Buffetts big homebuilder bet he made early in 2023. August 2025: Berkshire Hathaway disclosed that during Q2 2025 (the three months ending June 30), the company made a bet on U.S. homebuilders by purchasing around 1.5 million shares of D.R. Horton (valued at around $191.5 million). In the first half of 2025, Berkshire Hathaway acquired just over 7 million shares of Lennar, valued at nearly $800 million. November 2025: Berkshire Hathaway disclosed that it has sold its D.R. Horton stake of around 1.5 million shares. While Berkshire Hathaway has sold off its shares of D.R. Horton (No. 123 on the Fortune 500), it still owns around 7.2 million shares of Lennar (No. 129 on the Fortune 500) and around 11,112 shares of NVR (No. 396 on the Fortune 500), according to ResiClubs review of Berkshire Hathaways latest SEC filings. Given Buffetts own adviceIf you arent willing to own a stock for 10 years, dont even think about owning it for 10 minutesits probably fair to avoid drawing sweeping long-term housing market conclusions from Berkshire Hathaways homebuilder stock trades over the past two years. After all, the firm bought them, sold them, bought them again, and sold them four times in just over a two-year window. That said, if you forced me to speculate, Id guess Berkshire Hathaway initially eyed homebuilder stocks in the first half of 2023, after their sharp pullback in 2022, as builders adjusted to the rate shock. But heading into 2024, Berkshire Hathaway may have gotten cold feet on homebuilders as a long hold, as it became clear that the housing markets early-2023 firming was a bit of a head fakeand that a bigger power shift toward buyers, further housing-market softening, and additional homebuilder margin compression were still ahead. After that played out, earlier this year, Berkshire Hathaway may have concluded that most of that margin compression had already been priced in and that it wanted back in on homebuilders. That speculation does leave one remaining question: Why would Berkshire Hathaway now sell off D.R. Horton while still holding onto Lennar and NVR? First, D.R. Hortons stock has had a stronger bounce-back over the past few months, while Lennar and NVR have not. (Perhaps Berkshire Hathaway believes that bounce-back still awaits.) So it might not be that D.R. Horton has fallen out of favor with Berkshire Hathaway, but instead simply that D.R. Hortons stock has already priced in much of its short-term upside. Secondand this is me reading deep between the linesperhaps Berkshire Hathaway likes that Lennar has been more aggressive during this soft window in taking market share. While all the public homebuilders that ResiClub tracks have compressed profit margins over the past three years to offer larger incentives and affordability adjustments in an attempt to avoid a sharper pullback in housing starts, Lennar has been the most aggressive on that front. In fact, Lennar has compressed its margins all the way back to 2009 levels, and is spending the equivalent of roughly 14.3% percent of final sales on incentives (compared with the typical 5% to 6% in normal times) in order to grow home sales and capture market share. In September 2025, Lennar executives acknowledged that its finally time to pause [that strategy] and let the market catch up a little bit. That doesnt mean theyre completely reversing course or losing the market share theyve recently gained while using the strategy. Instead, it means they cant be as aggressive in early 2026 in pursuing additional market share, given how much margin compression theyve already absorbed. Some investors, including Berkshire Hathaway, might like that Lennar has pursued a bigger market share through this choppy stretch and is now starting to defend margins. Here’s what Stuart Miller, co-CEO of Lennar, said during the company’s September 19, 2025, earnings call: For Lennar, this is n opportune time to pause and let the market catch up a little bit. Even though mortgage rates began to trend downward toward the end of the quarter, stronger sales have not yet followed. We have certainly begun to see early signs of greater customer interest and stronger traffic entering the market. With lower mortgage rates, purchasers are showing greater interest in considering their home purchase. And this is generally an early signal of stronger sales activity to follow, assuming rates remain lower. And if interest rates continue to fall, we’re quite optimistic that this all will happen soon. The extended period of higher interest rates for longer than expected forced us, however, to adjust construction costs [lower average sales price] in order to enable sales in difficult market conditions. Our lower construction cost structure, together with reduced margin [bigger incentives], enabled us to meet affordability and support the supply-and-demand balance. We drove sales pace to match production pace, and we fortified our market share and position in each of our strategic markets. We are now situated with a lower cost structure, efficient product offerings, and strong market positions to accommodate pent-up demand as rates moderate and confidence ultimately returns. As I said before, this is the right time. This is just the right time for us to pull back just a little bit. We believe that we’ve gotten ahead of the current market realities, and we have built what we believe is a stronger long-term margin-driving platform. We know that this has taken some time as the market has remained weaker for longer, but we also know that our strategy has helped build a healthier housing market and has positioned Lennar for strong cash flow and bottom-line growth in the future. While our deliveries were just below our goal for the quarter, and while we sold more homes than expected during the quarter, these accomplishments came at the expense of further deterioration of margin, which came down to 17.5%. Accordingly, we’re going to begin to ease back our delivery expectations for the fourth quarter and full year in order to relieve the pressure on sales and deliveries and help establish a floor on margin. We will reduce our delivery expectations for the fourth quarter to 22,000 to 23,000 homes, and we will reduce our full-year expectation to 81,500 to 82,500. In addition to the Lennar and NVR homebuilder shares that Berkshire Hathaway still owns, the firm also fully owns Clayton Homesthe largest U.S. builder of manufactured and modular homesand HomeServices of America, a Berkshire Hathaway affiliate (under Berkshire Hathaway Energy) that offers a wide range of real estate services including brokerage, mortgage origination, and title and escrow.
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For years, philosophers and psychologists have debated whether empathy helps or hinders the ways people decide how to help others. Critics of empathy argue that it makes people care too narrowlyfocusing on individual stories rather than the broader needs of societywhile careful reasoning enables more impartial, evidence-based choices. Our new research, forthcoming in the academic journal PNAS Nexus, a flagship peer-reviewed journal of the National Academy of Sciences, suggests this heart versus head argument is too simple. Empathy and reasoning arent rivalsthey work together. Each one on its own predicts more generous, far-reaching acts of assistance. And when they operate side by side, people tend to help in the fairest waysnot favoring some over othersand in ways that touch the most lives. We studied two groups that regularly help others at personal cost. One consisted of living organ donors who gave kidneys to strangers. The other included effective altruists, who use evidence and logic to direct substantial portions of their income or careers toward causes that save the most lives per dollar, such as fighting extreme poverty or preventable illness. All participants completed survey measures of empathyessentially, how much they care about and are moved by others suffering. They also completed survey measures of reasoning. These assess how often people slow down, reflect, and think through things before deciding what to do. We also examined how these abilities related to a range of altruistic judgments and behaviors, from hypothetical choicessuch as deciding whether to help a close friend or a distant strangerto real-world donations. On average, organ donors scored higher on empathy, and effective altruists scored higher on reflective reasoningslowing down and thinking things through. But across all participants, both traits were linked to broader, more outward-looking helping. People with either an elevated heart or head, and especially those with both, when compared with average adults, tended to support distant others and focus on helping as many people as possible. Even among organ donors, whose empathic ability is far above that of average adults, empathy did not make them biased toward those who were close or familiar. When we measured their altruistic judgments and real-world donations, they were just as likely as average adults, and sometimes even more likely, to favor causes that saved the greatest number of lives. These patterns challenge the assumption that empathy can narrow moral concern. In practice, we found, empathy can broaden it. Why it matters Relying on reason alone isnt enough to inspire people to help strangers. [Photo: Julia M. Cameron/Pexels] Many of todays most urgent problemspoverty, climate change, global healthdepend on motivating people to care about strangers and to use limited resources effectively. Appeals to empathy alone may inspire giving, but not necessarily the most effective giving. Appeals to reason alone can leave people unmoved, as often facts and numbers dont stir anyone to care. Our findings suggest that the most powerful approach may be to pair empathys motivation with reasonings direction. Empathy provides the emotional sparka reminder that others suffering matters. Reasoning helps steer that motivation toward where help will have the greatest impact. Together, they encourage helping that is both compassionate and consequential. Whats next Future research needs to determine how empathy and reasoning can be strengthened in everyday decision-making. Could emotional stories paired with clear evidence about what works best help people choose actions that do the most good? We also dont yet know whether people who focus their giving beyond the boundaries of their immediate social circles, like effective altruists, pay any social cost for doing soperhaps by inadvertently signaling less investment in close others. Promisingly, early evidence from organ donors shows that those who help strangers often maintain strong, stable relationships with their closest friends and family members. Perhaps most importantly, researchers need to rethink how altruism is understood. Psychology lacks a clear framework for explaining how empathy and reasoning work together, for whom they work best, and the situations where they come apart. Developing that kind of model would reshape how we think about helpingwhen helping expands, when it stalls, and why. While such core questions remain, the present findings offer reason for optimism. The Research Brief is a short take on interesting academic work. Kyle Fiore Law is a postdoctoral research scholar in sustainability at Arizona State University. Brendan Bo O’Connor is an associate professor of psychology at the University at Albany, State University of New York. Stylianos Syropoulos is an assistant professor of psychology at Arizona State University. This article is republished from The Conversation under a Creative Commons license. Read the original article.
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Most entrepreneurs are familiar with diminishing returns: how, when other variables stay constant, at some point putting in additional time and effort results in increasingly smaller results. Since resources are always limited, figuring out where to spend your entrepreneurial time so it delivers the best bang per hour is critical. That same premise extends to health and fitness. If youre like many entrepreneurs, you try to stay reasonably fit not just because its good for you, but because exercise helps you perform better under stress. Can elevate your mood for up to 12 hours. Can even make you a little smarter. Still: how healthy and fit . . . is healthy and fit enough? If you want to run a marathon, your definition of fit will differ from most. But if you want to compare yourself with other people and see where you currently standand, more important, get a sense of where you would like to standhere are three simple tests you can do at home. If you fall in the average range, thats good. If you fall closer to the excellent range, thats greatand may be a sign that doing more in an attempt to increase your score might push you into the land of diminishing returns. So with all that said, here are the three tests. Lower Body Strength To conduct this test, find a chair that, when you sit on it, puts your thighs at a 90-degree angle to your lower legs. Then put your hands on your hips, lower yourself until your bottom grazes the chair, and then straighten back up. Then do as many reps as you can, without resting, until you run out of (leg) gas. Heres a graph so you can see where you stand. (All images are courtesy of research scientist Schalk Cloete; for more, check out his deep dive into the subject.) Want to be able to do more? Like many things, increasing the number of squats you can do is just a matter of time and effort: do four or five sets of squats to failure three times a week, and in three weeks youll definitely be stronger. And with a great outcome: squats can strengthen your lower body and core, improve your flexibility, and reduce your risk of injury. Upper Body Strength The American College of Sports Medicine recommends using a pushup test to assess upper body strength and endurance. To do pushups their way, start at the top, go down to the 90-degree mark, and push back up without locking out at the top. Women can do plank-version pushups or modified (from the knees) pushups. Then just count how many you can do in one set. (A few couple-second rest breaks at the top are okay.) Heres the results graph: Comparing yourself with others provides a reasonable sense-check. But also keep this in mind: a Harvard study shows that men (unsure why they didnt include women) who could do 40 or more pushups were 96% less likely to experience a cardiovascular event than those who could only do 10 or less. In fact, pushup capacity was more strongly associated with reduced cardiovascular disease risk than aerobic capacity. So if you want to increase the number of pushups you can do, heres a simple process you can follow (scroll down to How many pushups do you want to do?). Do that routine three times a week for 10 minutes, and after three weeks youll definitely be stronger. Cardiovascular Fitness Since there are a variety of ways to evaluate cardiovascular fitness, this ones a little trickier. There are stress tests. Exertion/heart rate tests. Whether you can run a mile, and if so how fast you can run it, is a valid test. Another is VO2 max, the maximal volume of oxygen that can be inhaled and absorbed by a body. Generally speaking, the higher your VO2 max, the btter your cardiovascular fitness (within genetic reason, of course.) One way to estimate your VO2 max is to use a fitness calculator like this. Answer a few questions and youll learn your expected VO2 max (based largely on things like age) and your estimated VO2 max (based on activity levels, resting hear rate, and waist size.) Or you do the one-mile walk test as described here. Then see how you stack up: There are a number of ways to improve your cardiovascular fitness. Walking (briskly) is a great start. So is jogging. So is cycling, rowing, elliptical training . . . or if you want to double-dip and get some strength gains at the same time, consider doing HIIT workouts. Research shows that 11 (intense) minutes a day can make a meaningful difference. Which is where diminishing returns come into play. If you want to enjoy the benefits of reasonablenot extreme, just reasonablefitness, you dont have to spend hours on a treadmill. You dont have to spend hours at the gym. You just need to do a few key things that make a big impact . . . and then do them consistently. Which is surely the same approach you take to running your business. Jeff Haden This article originally appeared on Fast Companys sister publication, Inc. Inc. is the voice of the American entrepreneur. We inspire, inform, and document the most fascinating people in business: the risk-takers, the innovators, and the ultra-driven go-getters that represent the most dynamic force in the American economy.
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