"Warren Buffett's Berkshire Hathaway ( )( ) has long viewed Nucor ( ) as a cornerstone of value investing. The Oracle of Omaha first scooped up shares in the 1990s, drawn to Nucor's innovative electric arc furnace technology that revolutionized low-cost steel production. Over decades, this stake has symbolized Buffett's faith in resilient, cash-generating industrial giants. Nucor, America's largest steel producer, has rewarded that patience with consistent dividends and market-beating returns, even through commodity cycles."
"Fast-forward to the second quarter, and Buffett dramatically ramped up his buying of the stock , acquiring roughly 6.6 million shares for about $850 million. While this near-billion-dollar bet might seem massive, it carves out just 0.3% of Berkshire's sprawling $344 billion portfolio. For Buffett, who's notoriously selective about materials sector dips - preferring consumer staples and financials - this move stands out. NUE stock has surged 22% year-to-date, handily outpacing the S&P 500."
Nucor's electric arc furnace technology established it as a low-cost steel producer and long-term Buffett holding. The stake reflected confidence in resilient, cash-generating industrial businesses that deliver steady dividends and strong returns through commodity cycles. In Q2 Berkshire acquired roughly 6.6 million Nucor shares for about $850 million, representing roughly 0.3% of its $344 billion portfolio. Buffett's purchase followed a trough near $97 in early April and a subsequent 45% rebound. Nucor trades under 1x forward sales with a forward P/E near 11.5, below historical averages.
Read at 24/7 Wall St.
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