Buffett bet a billion at a 52-week low. Why is this stock still interesting?

When Warren Buffett (or his successor Greg Abel) decided to buy more than three million shares of an American developer of single-family homes in the first quarter of 2026 and expand their position by 40%, the market registered rather than celebrated. The company's stock was trading near a 52-week low, the sector was under pressure from housing unaffordability, mortgages were going over 7% and developer margins were shrinking by tens of percent. Still, Berkshire Hathaway bet roughly $1 billion.

The question for the investor is simple: follow the legend, or is it different this time? Lennar - the second-largest single-family home developer in the U.S. - trades at a P/E of 13 and a P/B of 1.04, levels we haven't seen from a quality developer in years. Moreover, the company has made a strategic transformation over the past two years that has transformed it from a classic "land-heavy" developer to an asset-light homebuilder. Let's take a look at what Buffett's team is seeing and what the…