Berkshire Hathaway Nearly Doubles Stake in Lennar Amid Housing Market Challenges
Berkshire Hathaway has nearly doubled its stake in U.S. homebuilder Lennar since the beginning of July, acquiring a total of approximately 25.9 million shares valued at $2.1 billion as of late Friday. This represents a significant increase from June's holdings and accounts for about 10.9% of outstanding shares. The move is attributed to portfolio manager Ted Weschler and reflects Berkshire’s long-term bet on the housing market recovery, despite Lennar’s recent struggles with declining sales and affordability issues. Berkshire was required by SEC rules to disclose its stake after reaching a 10% ownership threshold in September, triggering insider status. The company continued purchasing shares during late September at an additional cost of $212 million before the first disclosure and another $136 million following it. Lennar’s stock has fallen nearly 9% since Berkshire began these purchases and is down over 20% year-to-date amid weak earnings reports. Analysts suggest that Berkshire may be positioning itself for a potential larger acquisition of Lennar, though CEO Stuart Miller's significant ownership in Class B shares could complicate such moves. The investment aligns with Berkshire’s broader housing strategy following the recent $6.8 billion Taylor Morrison Home acquisition by Greg Abel.
Topics: Berkshire Hathaway Lennar Corporation Stock Holdings Warren Buffett