Berkshire Hathaway increased its stake in U.S. homebuilder Lennar to 10.9%, valued at $2.1 billion, betting on a recovery in the U.S. housing market.
Berkshire Hathaway has nearly doubled its stake in Lennar, the second-largest homebuilder in the U.S., since early July. It now holds a total of 25.9 million shares, valued at $2.1 billion, representing 10.9% of Lennar's total outstanding shares. This move is seen as Berkshire's bet on a long-term recovery of the struggling U.S. housing market. According to SEC regulations, Berkshire was required to disclose its holdings quickly due to reaching the 10% threshold. The company disclosed on Monday (September 21) that it purchased $212.4 million worth of Lennar stock between September 17 and 21, and after market close on Friday (September 25), it disclosed an additional purchase of $136.4 million on Wednesday, Thursday, and Friday. Lennar's stock price surged by as much as 6.8% after Berkshire's initial disclosure. However, Lennar's recent performance fell short of expectations, with an 8% decline in revenue, and its stock price has dropped by 20.1% year-to-date.
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