Installed Building Products (IBP) Held Steady Despite Weak Housing Market
Giverny Capital Asset Management, LLC, an investment management company, recently published its fourth-quarter 2025 investor letter. A copy of the same can be downloaded here. The Portfolio returned 0.01% compared to 2.66% for the S&P 500. YTD, the fund returned 12.58% compared to 17.88% for the Index. The firm faced a challenging fourth quarter and calendar year, despite solid appreciation. The outperformance of a few large technology companies has negatively impacted performance, given the portfolio's underweight in large tech and overweight in smaller niche leaders. While portfolio companies are excelling in earnings growth and capital returns, the market is fixated on AI investments, leaving the actual benefits unclear. Additionally, you can review the Portfolio’s top 5 holdings to see its best picks for 2025.
In its fourth-quarter 2025 investor letter, Giverny Capital Asset Management highlighted Installed Building Products, Inc. (NYSE:IBP) as one of its leading performance contributors. Installed Building Products, Inc. (NYSE:IBP) is a construction company that engages in the installation of insulation and other building products. The one-month return of Installed Building Products, Inc. (NYSE:IBP) was 5.09%, and its shares gained 53.58% of their value over the last 52 weeks. On January 30, 2026, Installed Building Products, Inc. (NYSE:IBP) stock closed at $288.14 per share, with a market capitalization of $7.773 billion.
Giverny Capital Asset Management stated the following regarding Installed Building Products, Inc. (NYSE:IBP) in its fourth quarter 2025 investor letter:
"Installed Building Products, Inc. (NYSE:IBP) installs fiberglass insulation into the walls of new homes and apartment buildings. Given the weak housing market, it grew earnings modestly in 2025, but even that trounced expectations. IBP has exceptional management and has generated good returns for us over the past four years."
Installed Building Products, Inc. (NYSE:IBP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 28 hedge fund portfolios held Installed Building Products, Inc. (NYSE:IBP) at the end of the third quarter, up from 21 in the previous quarter. While we acknowledge the potential of Installed Building Products, Inc. (NYSE:IBP) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.
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