Berkshire Hathaway Invests $212 Million in Troubled Homebuilder Lennar
Warren Buffett's Berkshire Hathway has acquired approximately $212.4 million worth of shares in homebuilder Lennar (LEN) over three trading days, increasing its total stake to around $1.4 billion. The purchases occurred between September 17 and September 21, following a weak third-quarter report from Lennar that saw earnings drop by nearly half year-over-year and revenue fall 8.6%. Despite the poor performance, Berkshire's investment suggests it sees undervaluation in the stock. Lennar reported new home orders down 9% to 20,879 units for Q3, with gross margins declining from 17.5% to 15.8%, and revised its full-year delivery outlook downward. Analysts including Barclays and Royal Bank of Canada have cut their price targets in response. Lennar's CEO attributed the struggles to high interest rates and weak consumer confidence. Berkshire has been expanding into the housing sector, having recently acquired Taylor Morrison for $6.8 billion and already holding stakes in D.R. Horton and Clayton Homes.
Tickers: $LEN
Topics: Berkshire Hathaway Housing Market Lennar Corporation Stock Investment