Berkshire adds to nearly doubled stake in slumping homebuilder — SkimNews
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- Berkshire Hathaway owns 25.9 million Lennar shares (10.9% of shares outstanding), valued at $2.1 billion, a 93% increase from 13.4 million shares as of June 30
- Berkshire crossed the 10% insider threshold on September 21, triggering accelerated SEC disclosure and reporting $212.4 million in Lennar purchases between September 17–21, plus another $136.4 million on Wednesday through Friday
- Lennar stock gained 5.2% over four trading days after the first filing but is down 9.2% through Friday's close in Q3 and 20.1% year-to-date, after quarterly earnings missed Wall Street forecasts and revenue fell 8%
- Lennar CEO told analysts homes are less affordable with 30-year mortgages hitting 7% and fewer qualified buyers, though CFRA's Cathy Seifert called the Berkshire accumulation a "classic Berkshire value play"
- Berkshire's housing exposure extends beyond Lennar to its $6.8 billion Taylor Morrison acquisition (announced June, to be combined with Clayton Homes), plus Shaw Industries, Johns Manville, and Benjamin Moore
- Greg Abel told CNBC he sees no "immediate recovery" for U.S. homebuilders but expects Taylor Morrison to be a "very strong asset" five to 10 years out because "the American dream will continue to exist"
- Barron's Andrew Bary suggested Berkshire "probably would like to buy all of Lennar" at a cost of ~$25 billion, but Chairman Stuart Miller's 70% ownership of super-voting Class B shares likely prevents any full takeover bid
Why it matters: Berkshire is deploying capital into a beaten-down homebuilder at a moment when Lennar's own CEO flags 7% mortgage rates as squeezing affordability — a contrarian long-term housing bet layered on top of its $6.8 billion Taylor Morrison deal. The 10.9% stake suggests further accumulation is planned, but the path to a full ~$25 billion takeover is blocked by Lennar Chairman Stuart Miller's 70% Class B voting control, meaning Miller himself would need to agree to sell.
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