Berkshire Raises Lennar Stake to 11.2% With $53.9 Million in New Purchases

Berkshire Hathaway (BRK.A, BRK.B) increased its stake in homebuilder Lennar Corp. (LEN) to 11.2%, buying 2.66 million shares as of Sept. 30, according to an SEC filing. The holding is worth more than $2.1 billion based on Lennar's Oct. 2 close of $79.81. The purchases spanned Sept. 28-30 and totaled $53.9 million. Berkshire bought $53.6 million of Class A shares and $329,000 of super-voting Class B stock. The stake crossed the 10% threshold in mid-September, triggering a two-business-day disclosure requirement. A separate filing showed six buying days out of seven from Sept. 17-25, spending nearly $349 million, or about $58.17 million daily. The move is a contrarian bet as U.S. housing cools. Freddie Mac reported the average 30-year mortgage rate rose to 7.28% on Oct. 1, the highest since November 2023, while purchase and refinance applications fell 6% in the week ended Sept. 25. Morgan Stanley initiated coverage on Oct. 1 with an Underweight rating and a $65 price target, about 19% below Lennar's Oct. 2 close. Shares fell 2.8% that day.