Key Takeaways
- Warren Buffett’s Berkshire Hathaway acquired an additional $192.6 million in Lennar shares on October 1-2, 2026.
- The conglomerate’s position has expanded to approximately 12% of the homebuilder, valued at roughly $2.2 billion.
- Shares of LEN tumbled 7% to $74.44 on Monday, marking a fresh 52-week low.
- The decline came after Hunterbrook published a critical analysis of Lennar’s relationship with Millrose Properties.
- The homebuilder’s most recent quarterly results fell short of analyst expectations on both earnings and revenue.
Shares of Lennar stock finished Monday’s trading session at $74.44, representing a 7% decline and establishing a new 52-week low. The downturn occurred even as Warren Buffett’s investment firm continued accumulating shares.
According to a recently filed Form 4 document, Berkshire Hathaway acquired 2.4 million additional Lennar shares during Thursday and Friday’s trading sessions. The combined purchases amounted to $192.6 million and included both Class A and Class B shares.
The investment giant now holds approximately 12% of the Miami-based homebuilder, representing a position worth nearly $2.2 billion. This marks more than a twofold increase compared to Berkshire’s holdings at the conclusion of Q2.
The purchasing activity has been consistent. On the first day of October, Berkshire acquired 705,690 Class A shares at weighted average prices spanning $79.49 to $81.46. The firm also added 4,852 Class B shares during the same session.
The following day saw accelerated activity. Berkshire purchased 1,655,866 Class A shares, with weighted average prices falling between $78.37 and $81.90. An additional 10,176 Class B shares were also acquired.
Combined, Berkshire’s various subsidiaries now control 28.4 million Class A shares alongside 568,028 Class B shares. While Warren Buffett serves as the controlling shareholder of Berkshire, he formally disclaims beneficial ownership beyond his direct economic interest.
What Triggered Monday’s Selloff
The sharp Monday decline had identifiable catalysts. Research firm Hunterbrook, which combines investigative journalism with investment activities, published allegations regarding Lennar’s transactions with Millrose Properties, a land-banking entity that Lennar separated from its operations in 2025.
According to Hunterbrook’s analysis, Lennar transferred more than 700 residential properties to Millrose, which subsequently operates them as rental units. The report alleges that Millrose paid above-market prices for these properties compared to what individual homebuyers would typically pay.
Neither company provided comment when the allegations first surfaced. The lack of response added pressure to the stock price.
It remains unclear whether Berkshire extended its buying activity into Monday. Under regulatory requirements, because Berkshire owns more than 10% of Lennar, it must file disclosure documents within two business days of any transaction, meaning a Monday purchase would require reporting by Wednesday.
Weak Quarterly Performance Adds Pressure
The stock decline occurs against a backdrop of disappointing financial results. Lennar’s third fiscal quarter performance fell short of expectations on both key metrics. The company posted adjusted earnings of $1.23 per share, missing the $1.29 analyst consensus, while revenue of $8.05 billion came in below the anticipated $8.31 billion.
New home orders also declined year-over-year, suggesting weakening demand in the housing market. Analysts have responded accordingly.
Morgan Stanley initiated coverage with an underweight rating and established a $65 price target, citing concerns about margin compression. Raymond James maintained its underperform rating, highlighting Lennar’s strategy of maintaining stable production levels despite volatile mortgage rate conditions.
Truist Securities maintained a hold rating with a $75 price target. Citizens JMP kept a market perform rating while observing that incentive rates had modestly decreased, offering a minor positive signal.
The homebuilder continues deploying capital through share repurchases, dividend payments, and debt reduction to support shareholder returns. Meanwhile, Berkshire’s aggressive accumulation has resulted in unrealized losses, given that Monday’s closing price represents the stock’s weakest level since 2022.
Lennar isn’t Berkshire’s only exposure to residential construction. The conglomerate owns Clayton Homes outright and completed an $8.5 billion acquisition of Taylor Morrison this past July.
Market observers speculate that Ted Weschler, a portfolio manager responsible for approximately 6% of Berkshire’s $350 billion equity portfolio, may be directing the Lennar investments. Weschler operates under CEO Greg Abel’s oversight.
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