Berkshire Hathaway Doubles Down on Lennar Amid Housing Market Slump
Berkshire Hathaway has increased its stake in Lennar to nearly 11%, signaling that the conglomerate remains committed to the value-investing strategy that defined Warren Buffett’s decades-long tenure. Regulatory filings confirm the firm spent $349 million to acquire additional shares, bringing its total investment in the homebuilder to approximately $2.1 billion.
The aggressive accumulation of shares follows a 21% decline in Lennar’s stock price this year, leaving the company trading at roughly $82—less than half of its peak value two years ago. This move mirrors the classic playbook of buying distressed assets during periods of market volatility. The homebuilder currently faces significant headwinds from a cooling U.S. housing sector, where rising borrowing costs and renewed inflation fears have stalled demand.
While this approach echoes the methodology of the 96-year-old former chairman, market observers suggest the execution likely rests with investment manager Ted Weschler, under the guidance of new CEO Greg Abel. Despite the scale of the purchase, Lennar remains a relatively minor component of Berkshire’s massive $300 billion equity portfolio. The conglomerate continues to balance its diverse holdings, ranging from Geico and Fruit of the Loom to major positions in Apple and American Express, maintaining the long-term focus that historically outperformed the S&P 500.
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