Lennar shares pop as Berkshire builds almost a 10% stake in beleaguered homebuilder
The conglomerate built by Warren Buffett and led today by Greg Abel holds a sizable stake in Miami-based homebuilder Lennar.
TL;DR
- Berkshire Hathaway has accumulated an almost 10% stake in beleaguered homebuilder Lennar.
- The purchase is characterized as a 'classic' value play by analysts.
- Lennar's stock surged after the announcement, despite the company having plunged over 32% in the past year.
- Rising interest rates are negatively impacting homebuilders by decreasing affordability.
- Lennar reported weak third-quarter earnings and provided a cautious fourth-quarter forecast.
- Berkshire Hathaway has a history of investments in the homebuilding sector, including Clayton Homes and Taylor Morrison.