Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
Written in the first person by Warren and Charlie. We reach our own conclusions from the filings, the earnings calls, competitor disclosures, and the current quote — and from nobody's portfolio but our own reasoning. Lennar is a very well-run company in a fundamentally average business. It is the largest or second-largest homebuilder in America, it now carries a fortress balance sheet, and its managers have been about as intelligent with shareholders' money as any operator in this industry. We admire all of that. But admiration is not the same as ownership. Homebuilding is a cyclical, capital-hungry business selling a commodity product to buyers who shop on monthly payment and mortgage rate — and the proof is sitting right in front of us: home gross margins have collapsed from 22.1% to 15.6% in barely eighteen months, and the company is buying its own sales with 12.9% incentives.
Recent filings analysed: 10-Q (2026-06-29), 8-K (2026-06-12), 8-K (2026-06-11), 8-K (2026-06-08).
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