Berkshire Doubles Lennar Stake to $2.1 Billion as Housing Slump Cuts Shares 20%
Updated
Updated · CNBC · Sep 26
Berkshire Doubles Lennar Stake to $2.1 Billion as Housing Slump Cuts Shares 20%
3 articles · Updated · CNBC · Sep 26
Summary
$2.1 billion is Berkshire Hathaway’s current Lennar stake after it lifted holdings to 25.9 million shares, or 10.9% of the homebuilder, nearly double its June 30 position.
$348.8 million of disclosed September purchases drove the increase, including $212.4 million bought through Sept. 21 and another $136.4 million over the next three trading days after Berkshire crossed the 10% insider threshold.
Lennar shares jumped as much as 6.8% after the first filing, but the stock is still down 20.1% this year and fell 9.2% during Berkshire’s third-quarter buying.
Lennar’s latest quarter missed Wall Street forecasts, with revenue down 8% and management citing 7% 30-year mortgage rates, weaker affordability and fewer qualified buyers.
The bet fits Berkshire’s broader housing push after Greg Abel’s $6.8 billion Taylor Morrison deal, even as he has said any U.S. homebuilder recovery is likely years away.