Lennar

Berkshire Hathaway nearly doubled its position in Lennar despite weak quarterly results and now holds about 11% of the company. Lennar is one of the largest US homebuilders, focused on affordable first-time-buyer and family homes; roughly 94% of its revenue comes from homebuilding. The stock trades below book value, while the market environment remains strained by high 30-year mortgage rates. » More on finanzen.net

Berkshire Hathaway acquired about 23.7 million Class A shares and 528,000 Class B shares of Lennar, taking a roughly 10% stake worth about $1.8 billion. The purchases come after Lennar reported weak Q3 results and cut guidance, amid rising mortgage rates that have hurt affordability and homebuyer demand. Analysts call the move a classic Berkshire value play as the housing sector faces pressure from higher interest rates and falling builder stocks. » More on cnbc.com

Lennar reported fiscal Q3 gross margin on home sales of 15.8% and lowered its annual delivery outlook to 80,000–81,000 homes from 82,000–83,000. Construction costs per square foot fell about 6% year over year and cycle times shortened, but incentives remained near 12% of home value and orders and deliveries declined. Management expects modest margin pressure into Q4 as land and selling costs offset construction savings, and some brokers have lowered targets amid softer housing demand. » More on finance.yahoo.com