Lennar (LEN) Trades Below Its Own Book Value and Berkshire Keeps Adding. Why?

Lennar Corporation (NYSE:LEN) traded at around $77 on October 6, up 3.77% on the day and 39.05% lower over twelve months. Berkshire Hathaway has been buying through the decline, with a stake now above 11% of the company worth roughly $2.2 billion. Buying a ninth of a homebuilder below its own book value is a statement about what the land is worth. READ ALSO: Costco (COST) vs Walmart (WMT): Which is a Better Stock to Buy?Lennar (LEN) Trades Below Its Own Book Value and Berkshire Keeps Adding. Why? The Purchase Is an Argument About Inventory: Lennar's book value is $90.68 a share against a price near $77. At most companies, that gap means little, because book value records goodwill and brands that may be worth nothing in a bad year.