Berkshire Hathaway Buys 11 Percent Stake in Lennar Corp

Berkshire Hathaway Inc. acquired an 11 percent stake in Lennar Corp totaling $2.2 billion, positioning the conglomerate to potentially surpass Vanguard Group Inc. as the homebuilder's largest shareholder. The investment included $53.9 million in shares purchased during the final three days of September.

This move follows Berkshire's July acquisition of Taylor Morrison Home Corp for $6.8 billion. CEO Greg Abel directed these investments based on long-term optimism for the U.S. housing market, even as the industry struggles with inflation and rising interest rates.

Lennar has underperformed its peers this year, with its stock falling 21 percent year-to-date. This decline is attributed to a land-light strategy implemented in early 2025, which involved spinning off $5.5 billion in land into Millrose Properties. While CEO Stuart Miller continues to build homes to meet government calls for increased supply, the company faces financial pressure from its rigid third-party land financing structure.