Berkshire builds a nearly 10% stake in homebuilder Lennar
The move
Berkshire Hathaway bought 2.67 million Lennar Class A shares and 75,021 Class B shares between Sept. 17 and Sept. 21, worth about $212.4 million, taking its total position to nearly 10% of Lennar and about $1.8 billion. The buying started a day after Lennar missed third-quarter earnings estimates.
Why it matters
It's Berkshire's second housing bet under CEO Greg Abel, after it agreed to buy homebuilder Taylor Morrison for about $6.8 billion in a deal that closed in July.
The bear case
Lennar's stock fell on the earnings miss that preceded Berkshire's buying, and homebuilders are still working through weak demand and high mortgage rates.
What to watch
Whether Berkshire keeps adding to the Lennar stake, and Lennar's next earnings report.