Berkshire Hathaway Adds These Housing Stocks, Part 2

That the Warren Buffett/ Charlie Munger-led firm would go to the housing sector for names in which to place money seems odd given the steady rise in interest rates —including the 30-Year fixed mortgage rate. The old pros in Omaha surely have greater wisdom than the rest of us but let’s examine the positions.

Lennar
LEN
is the second home construction stock that was recently added to the Berkshire Hathaway
BRK.B
fund. The earnings growth over the past 5 years is +36% and this year’s earnings are up by 10.30%. The stock trades with a price-earnings ratio of just 7.98 and at just 1.33 times book value. Shareholder equity greatly exceeds the amount of long-term debt. Lennar pays a dividend of 1.28%.