Berkshire Hathaway (BRK.A) Increases Lennar (LEN) Holdings to 12% Despite Stock Hitting 52-Week Low at $74.44

TLDR

• Warren Buffett’s Berkshire Hathaway acquired an additional $192.6 million in Lennar shares during October 1-2, 2026.
• The conglomerate’s ownership position in the homebuilder has expanded to approximately 12%, valued near $2.2 billion.
• Shares of LEN plummeted 7% to $74.44 on Monday, establishing a fresh 52-week low.
• A Hunterbrook investigative piece raised concerns about Lennar’s business relationship with Millrose Properties.
• The homebuilder’s fiscal third-quarter performance disappointed on both earnings per share and revenue metrics.

Lennar stock finished Monday’s trading session at $74.44, representing a 7% decline and marking the company’s lowest price point in a year. The selloff occurred even as Warren Buffett’s Berkshire Hathaway continued accumulating shares.

Lennar Corporation, LEN

Recent regulatory disclosures via Form 4 reveal that Berkshire acquired 2.4 million additional Lennar shares over Thursday and Friday. The transactions, valued at $192.6 million combined, included purchases of both Class A and Class B common stock.

The Omaha-based investment giant now commands roughly 12% ownership of the Miami-based homebuilder, representing a position worth approximately $2.2 billion. This marks more than a doubling of Berkshire’s stake since the second quarter concluded.

The acquisition pattern has demonstrated consistency. During October 1 trading, Berkshire secured 705,690 Class A shares at weighted average transaction prices spanning $79.49 to $81.46. An additional 4,852 Class B shares were purchased the same day.

The following day saw accelerated activity. Berkshire acquired 1,655,866 Class A shares on October 2, with weighted average prices falling between $78.37 and $81.90. The company simultaneously added 10,176 Class B shares to its holdings.

Collectively, Berkshire’s various subsidiaries now possess 28.4 million Class A shares alongside 568,028 Class B shares. While Warren Buffett maintains controlling interest in Berkshire Hathaway, he formally disclaims beneficial ownership beyond his direct economic interest.

What Triggered Monday’s Decline

The sharp Monday decline had identifiable catalysts. Hunterbrook, a research and investment firm, published findings questioning Lennar’s transactions with Millrose Properties, a land-banking entity that Lennar separated into an independent company in 2025.

According to Hunterbrook’s analysis, Lennar transferred ownership of over 700 residential properties to Millrose, which subsequently operates them as rental units. The research further alleges that Millrose paid premium prices for these homes compared to what individual homebuyers would typically pay.

Neither company issued statements addressing the allegations when the report gained circulation. The absence of clarification contributed to investor uncertainty.

Whether Berkshire continued purchasing shares during Monday’s session remains undisclosed. Given its ownership exceeds 10% of Lennar’s outstanding shares, Securities and Exchange Commission regulations require disclosure within two business days, meaning any Monday transactions would necessitate filing by Wednesday.

Quarterly Results Add Pressure

The stock’s troubles extend beyond the investigative report. Lennar’s fiscal third-quarter financial results disappointed Wall Street expectations across key metrics. The company reported adjusted earnings of $1.23 per share, falling short of the $1.29 analyst consensus, while revenue totaled $8.05 billion against forecasts of $8.31 billion.

New home orders also declined year-over-year, indicating softening consumer demand in the housing market. Analysts have responded with measured caution.

Morgan Stanley initiated coverage with an underweight recommendation and established a $65 price objective, citing concerns about margin compression. Raymond James maintained its underperform stance, highlighting Lennar’s strategy of maintaining consistent production levels despite mortgage rate volatility.

Truist Securities held its neutral hold rating with a $75 price target. Citizens Financial maintained a market perform designation but acknowledged that incentive rates had decreased modestly, offering a minor positive signal.

The homebuilder continues deploying capital through share repurchases, dividend distributions, and debt reduction efforts to support shareholder value. Meanwhile, Berkshire’s aggressive accumulation has resulted in unrealized losses given Monday’s closing price represents the stock’s weakest level since 2022.

Lennar isn’t Berkshire’s sole exposure to residential construction. The conglomerate owns Clayton Homes outright and completed an $8.5 billion acquisition of Taylor Morrison this past July.

Industry observers speculate that Ted Weschler, a portfolio manager overseeing roughly 6% of Berkshire’s $350 billion equity portfolio, likely directed the Lennar purchases. Weschler operates under CEO Greg Abel’s supervision.

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