BRK just bought more LEN and mortgage rates hit 7.28%. Is it time to make a contrarian bet and buy deep value housing related stocks?
Berkshire Hathaway's continued purchases of LEN signal deep value opportunity in housing stocks despite elevated mortgage rates. The market's fear presents a contrarian opportunity to invest in fundamentally sound housing-related companies.
At post $81.58·Now $85.46+4.8% since postedas of Oct 29, 4:45 PM ET
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FYI, Berkshire Hathaway added $136.3 million dollars to their stake in Lennar the past three trading days - SEC Form 4 filing.
Berkshire Hathaway added $136.3 million to its Lennar stake over three trading days, bringing its total to 25.4 million class A and 548,892 class B shares. The insider buying by a major institutional investor signals conviction in the homebuilder's value and prospects.
At post $81.62·Now $85.46+4.7% since postedas of Oct 29, 4:45 PM ET
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$LENr/ValueInvestingStock Analysisbullish u/aznology · 37d agono track record yet Why is no one talking about LENNAR (LEN) <1 P/B Free money?
LEN trades below 1 P/B ratio, implying liquidation value ~12% above current market price. Combined with severe US housing shortage and structural demand, LEN has a margin of safety while positioned to gain share from smaller competitors unable to subsidize rates.
At post $80.99·Now $85.46+5.5% since postedas of Oct 29, 4:45 PM ET
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Long 13,100,000 shares of LEN
Berkshire keeps buying Lennar and it keeps falling. It's down 40% now
Berkshire's sustained accumulation of Lennar despite a 40% decline suggests confidence in an attractive entry price. The company views declines as buying opportunities rather than sell signals, indicating conviction that the market is mispricing the homebuilder.
At post $75.94·Now $85.46+12.5% since postedas of Oct 29, 4:45 PM ET
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Lennar Q3: EPS halved, FY target cut, and Q4 guidance exceeds backlog by ~6,000 homes
Lennar is trading margin for volume in a rising-rate environment, deliberately cutting price while holding deliveries steady. The strategy works only if rates fall before incentives erode profitability; otherwise it becomes a value trap rather than a value opportunity.
At post $75.94·Now $85.46+12.5% since postedas of Oct 29, 4:45 PM ET
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Lennar Corp.: An Attractive Contrarian Value Opportunity Below Book Value
Lennar trades at 0.87x book value (1.04x tangible book value) with a strong balance sheet and relatively low leverage. If interest rates normalize and housing demand recovers, the company has significant upside potential as a contrarian value opportunity during a weak market phase.
At post $79.19·Now $85.46+7.9% since postedas of Oct 29, 4:45 PM ET
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Lennar: Housing Lull Hiding Improved Business Model
Lennar's improved business model—spinoff of land holdings into Millrose, net cash position, and capital-light structure—creates durable competitive advantages that are currently masked by a housing market lull. The structural undersupply of US housing (2-10 million units) and expected market rebound over 3-5 years position Lennar to benefit significantly from the cyclical upturn while maintaining competitive strength.
At post $87.59·Now $85.46-2.4% since postedas of Oct 29, 4:45 PM ET
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3 stocks under 9x forward P/E that institutions are quietly loading up on
Lennar trades at ~7x forward P/E with a 4 million home supply deficit supporting new builds as the only meaningful supply source. The company has improved fundamentals (7% YoY construction cost reduction, inventory turn-up, $2.1B cash, <15% debt-to-capital), recent asset-light Millrose spin-off, and political insider buying, with spring selling season as a near-term catalyst.
At post $95.33·Now $85.46-10.3% since postedas of Oct 29, 4:45 PM ET
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