Berkshire increased its stake in a major homebuilder. The company's stock fell to a four-year low.

Berkshire Hathaway purchased an additional $190 million worth of shares in Lennar, the second-largest homebuilder in the U.S., late last week. The investment firm now owns 12% of the company. The stake is valued at about $2.2 billion, according to Barron’s. However, the publication notes that Berkshire is currently incurring losses on this investment. On Monday, October 5, Lennar’s stock closed at its lowest level since 2022 following accusations from short sellers.

Berkshire, which nearly doubled its stake in Lennar from late June through mid-September and continued to increase it, now owns 29 million Class A and Class B shares of the company, according to documents filed with the U.S. Securities and Exchange Commission on Monday. Since Berkshire’s stake exceeded 10%, it has been required to disclose information about transactions involving the homebuilder’s securities within two business days.

The investment firm did not say whether it continued to buy Lennar shares on Monday, when they plummeted 6.7%, hitting a four-year low.

Lennar's stock price plummeted following a report by the investment firm Hunterbrook Capital, which cast doubt on the developer's transactions.

This refers to the relationship with Millrose Properties, a company that manages land assets and was spun off from Lennar in 2025. According to Hunterbrook, instead of standard land sales, Lennar now sells completed homes to Millrose, which then leases them out. The report states that Millrose apparently paid more for these homes than private buyers would have.

Both Millrose and Lennar declined to comment to *Barron’s*.

Hunterbrook Capital holds short positions in the stocks of both companies, according to the report. Like other short sellers, Hunterbrook benefits from a decline in the value of these stocks, the publication notes.

This purchase is straight out of Warren Buffett’s investment playbook, Business Insider noted in mid-September. The legendary guru’s retirement hasn’t stopped Berkshire from continuing to do what it does best—buying up discounted stocks, the publication writes. Since the beginning of the year, Lennar’s market value has fallen by nearly 28%. Berkshire began building its position in the first half of 2025—while Buffett was still at the helm.

The developer has been hit by a slowdown in the U.S. real estate market: the war in Iran has once again heightened inflation expectations and led to higher borrowing costs, further exacerbating the problem of housing affordability for potential buyers.

Lennar remains a small holding in Berkshire’s portfolio, accounting for about 0.75% of its weight. The size of the investment suggests that investment manager Ted Weschler is behind the purchases, Barron’s notes. He manages about 6% of the portfolio and reports to the new CEO, Greg Abel.

This article was AI-translated and verified by a human editor