Ed Wachenheim: Homebuilders, Cyclicals & GM Trim Explained

Summary

In this episode, Ed Wachenheim of Greenhaven Associates discusses his $6.1‑$6.2 billion equity portfolio, which remains heavily concentrated in cyclical and housing‑related stocks such as General Motors, Lennar, Toll Brothers, PulteGroup and D.R. Horton. He explains recent trims—most notably a 34% reduction in GM—and modest cuts to homebuilders as routine risk management rather than a strategic pivot, while highlighting new bets on Avantor, Baxter International, and Schlumberger. Wachenheim emphasizes his traditional value approach: seeking undervalued companies with strong asset backs and cyclical recovery potential, maintaining medium‑to‑long‑term holdings, and making selective adjustments as valuations shift.