Berkshire Hathaway Raises Stake in Homebuilder Lennar to 11.2%, But Buying Pace Slows

Berkshire Hathaway has added to its stake in homebuilder Lennar this week, raising its ownership position to 11.2%, although the pace of its buying appears to be slowing, according to CNBC.

The purchases continue a pattern of accumulation in Lennar shares by Berkshire, the conglomerate led by Warren Buffett, which has built increasingly large positions in major US homebuilders in recent periods as part of its broader equity portfolio.

A slower pace of buying

While Berkshire continued to add shares this week, the reported slowdown in the rate of purchases could suggest the company is nearing a level of ownership it is comfortable holding, though no public statement accompanying the trades was cited to confirm its intentions going forward.

Berkshire's moves in individual stocks are closely watched by investors given the size of the conglomerate's portfolio and Buffett's long track record, with any shift in buying pace often interpreted as a signal about the company's view of a stock's valuation or prospects.

Lennar is one of the largest homebuilders in the United States, and its shares, like those of other builders, have been sensitive to swings in mortgage rates and broader housing-market conditions in recent years.