- Berkshire Hathaway now owns 25.9 million Lennar shares, including 25.4 million common shares and 549,000 Class B super-voting shares, valued at $2.1 billion. That equals 10.9% of Lennar's roughly 238 million shares outstanding and a 93% increase from the 13.4 million shares held as of June 30.
- The stake crossed the 10% insider trigger on September 21, requiring prompt disclosure. Berkshire reported buying $212.4 million of Lennar shares between September 17 and September 21, then an additional $136.4 million on September 23, 24, and 25.
- Lennar's stock fell 9.2% through Friday's close and is down 20.1% year to date. Last week's Q3 earnings missed Wall Street forecasts with revenue falling 8%, and current-quarter guidance disappointed as 30-year mortgage rates hit 7%.
- CFRA Research analyst Cathy Seifert called the purchase a classic Berkshire value play, noting Berkshire's significant housing presence through CEO Greg Abel's $6.8 billion Taylor Morrison acquisition and subsidiaries Clayton Homes, Shaw Industries, Johns Manville, and Benjamin Moore.
- Barron's Andrew Bary suggested Berkshire probably would like to buy all of Lennar for approximately $25 billion, but Chairman and CEO Stuart Miller's 70% ownership of controlling Class B shares is an obstacle.
Quotes
“classic Berkshire value play”
“any type of immediate recovery”
“very strong asset”
“American dream will continue to exist”
“probably would like to buy all of Lennar”
“houses are less affordable and there are fewer qualified buyers with 30-year mortgages hitting 7%”