Berkshire Hathaway continued buying shares of U.S. homebuilder Lennar this week, lifting its stake to 11.2%. In a filing submitted late Wednesday to the SEC, the company said it bought $53.6 million of Lennar’s Class A shares from Monday through Wednesday, along with another $329,000 of the super-voting B shares.
Based on Friday’s closing prices, Berkshire now holds 26.6 million shares worth about $2.1 billion. At the end of the second quarter, it owned 13.4 million shares, or a 5.4% stake, valued at $1.2 billion. That followed holdings of 10.3 million shares at the end of the first quarter and 7.2 million at the end of last year.
CNBC said Berkshire kept buying quietly through the third quarter as Lennar’s stock weakened, until its position crossed the 10% threshold in mid-September. That triggered an SEC rule requiring the company to disclose further transactions within two business days.
Two filings last week showed Berkshire bought nearly $349 million of Lennar stock on six of the seven trading days between September 17 and September 25, an average of $58 million per calendar day. This week, the average through Wednesday fell to just under $18 million. Because no new filing had appeared by Friday night, CNBC said Berkshire appears not to have bought on Thursday, which would bring the four-day average down to $13.5 million. Any Friday activity will only be known after Monday’s filing deadline.
Berkshire’s investment reflects a view that Lennar could benefit from a long-term recovery in the troubled U.S. housing market. Morgan Stanley, however, is more cautious on the stock’s near-term outlook. The bank initiated coverage on Thursday with an “underweight” rating and a $65 price target, nearly 19% below Friday’s close of $79.81. The average rate on a 30-year fixed mortgage in the U.S. has climbed for six straight weeks to 7.30%, its highest level since late 2023.
The same article also noted that Warren Buffett has returned to the top 10 of Forbes’ ranking of the world’s richest billionaires. As of 5:15 PM ET on Friday, Forbes estimated his net worth at $143 billion, or $3 billion more than Amancio Ortega’s $140 billion.
