Prediction: These Warren Buffett stocks will be big winners if Kamala Harris beats Donald Trump in November

Seventy two days. That’s how much time remains before millions of Americans head to the polls to vote for the next president of the United States. Many will cast their ballots even earlier.

I will not attempt to predict which presidential candidate will prevail in what is almost certain to be a very close election. However, I have a good idea of ​​the actions that will work well if the Democrats hold on to the White House.

Several of these stocks are in Warren Buffett’s portfolio. I predict these Buffett stocks will be big winners if Harris defeats Donald Trump in November.

Harris Affordable Housing Plan

Before I reveal which Buffett stocks I’m considering, let me first explain why I selected them. My reasoning is based on Harris’ recently announced economic plan. In particular, I think her affordable housing proposals have the potential to provide a key catalyst for some stocks.

Image source: Getty Images.

Harris wants 3 million new housing units to be built over the next four years. This number includes both rental housing and homes for sale. It’s an ambitious number that could make a major dent in the current US housing shortage. Zillow estimates that the country is 4.5 million homes short.

How does Harris plan to achieve this goal? First, it proposes to provide a tax incentive for homebuilders who sell homes to first-time buyers. The vice president also wants to create a $40 billion innovation fund that would help local governments meet housing needs in their areas.

Arguably the most important component of Harris’ affordable housing plan is to offer $25,000 to first-time homebuyers to help with their down payment. Only people who have paid their rent on time for at least two years would be eligible for financial assistance.

Three clear winners in Buffett’s portfolio

It doesn’t take an investing genius to figure out that Harris’ housing plan would likely provide a big boost to housing stocks, including those in the residential construction and building products industries. And a genius investor (I mean Buffett, of course) already owns a handful of stocks in those industries.

Buffett’s Berkshire Hathaway owns worth about 25.3 million dollars Lennar (LEN 3.51%) stock. Lennar is one of the largest homebuilders in the US. It builds both single-family and multi-family housing.

Berkshire’s portfolio also includes nearly $100 million DVR (NVR 3.76%) stock. Like Lennar, NVR is one of the nation’s largest homebuilders. The company’s Ryan Homes unit, which builds single-family homes, townhouses and garden condominiums, would particularly benefit from Harris’ proposals.

In addition to these two homebuilders, Berkshire owns an 8.5% stake Louisiana-Pacific (LPX 4.57%)worth nearly USD 557 million. Louisiana-Pacific is a leading supplier of engineered wood siding and structural building panels. While the company would not be directly affected by Harris’ plan to give tax incentives to homebuilders, its sales could increase due to the increase in new homes built by all of the vice president’s proposals.

Great long-term picks in any scenario

I predict shares of Lennar, NVR and Louisiana-Pacific will rise if Harris beats Trump. However, these gains could be short-lived if she does not have enough support in Congress to advance her agenda during her first term.

But I think these three stocks are excellent long-term picks in any scenario. If Harris wins and Democrats control both the House and Senate, he should do exceptionally well. Even if neither happens, however, Lennar, NVR and Louisiana-Pacific should provide solid long-term gains, as the housing shortage will be an issue regardless of which party is in power.