Munger Mode rating: 4 out of 5 — Buy. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We have spent our careers saying that homebuilding is a lousy business — cyclical, capital-hungry, commoditized, and hostage to interest rates. NVR is the exception that proves we should always look at the company, not just the industry label. This is a homebuilder that decided thirty years ago, after nearly dying from land speculation, that it would never own land again if it could help it. The result is a business that earns returns on equity north of 30% even in a housing downturn, carries essentially no net debt, converts earnings to cash, and has retired roughly 87% of its shares ever issued. The second quarter of 2026 was ugly on its face — net income down 29%, gross margins compressed from 21.5% to 19.2% — and the stock is down about 26% from its 52-week high. But new orders rose 9%, backlog is up, cancellations fell, and the balance sheet is a fortress.
Recent filings analysed: 10-Q (2026-08-05), 8-K (2026-07-23), 8-K (2026-05-15), 8-K (2026-05-08).
Stock screener · Superinvestor 13F holdings · Analyst sentiment · Market valuation