According to numerous media reports, Warren Buffett's Berkshire Hathaway may buy a stake in New Jersey-based home builder Hovnanian Enterprises, the No. 6 builder on the 2006 BUILDER 100 list. Hovnanian shares jumped 8.4 percent on Friday as a result of the rumors. The increase is welcome news for Hovnanian Enterprises; its shares were off by 47 percent in the first half of 2007.
Buffett, who has a net worth of $52 billion, is currently ranked the second richest billionaire in the U.S. (behind Bill Gates) by Forbes. Known for his savvy purchases, Buffett's possible interest in Hovnanian Enterprises may be a signal that the housing industry is approaching the bottom of its current slump.