Warren Buffett is making a major bet on a struggling sector. Berkshire Hathaway is accelerating its purchases of shares in the second-largest American homebuilder.

Normally, we have to wait for Berkshire Hathaway’s quarterly 13F filings to learn more about the moves of Warren Buffett’s investment company. This time, however, we have the benefit of news arriving ahead of schedule. Berkshire Hathaway has purchased $348 million worth of shares in the second-largest homebuilding group in the United States.

The mandatory disclosure arrived ahead of time because Berkshire Hathaway exceeded the group’s 10% ownership threshold. Crossing that threshold triggers a series of obligations, including the disclosure of current and future purchases.

The major buildup, with investments that began during the Buffett era

Warren Buffett recently stepped down as chairman of Berkshire Hathaway, citing the inexorable passage of Father Time. However, many of the investments the group is completing today actually began when the Oracle of Omaha was still at the company’s helm—and therefore before the new era under Greg Abel.

More interesting is the sector: Lennar operates in homebuilding, is the second-largest company in an enormous market such as the United States, and, above all, is active in a market that has been facing some difficulties for some time, also as a result of higher interest rates.

The bet, if we want to call it that, is fairly clear: the real estate market will roar back—and with it, a company that Berkshire Hathaway evidently considers undervalued.

Warren Buffett’s company exceeded 10% on September 21 and was therefore also required to disclose purchases made on the previous Wednesday, Thursday and Friday.

In total, purchases confirmed in filings with the SEC amounted to $212 million between September 17 and 21, followed by approximately $136 million on Wednesday, Thursday and Friday.

What about the other moves?

Aside from the recent commitment to Google, relatively little is actually known about the latest moves by Warren Buffett—or, more precisely, by his Berkshire Hathaway in the financial markets.

It is well known that the company is sitting on a huge amount of cash, which continued to increase in recent quarters. The recent commitment to Google is aimed at trying to ride the AI trend, at least in part, while relying on the solid foundation of a company with business operations beyond the sector.

The quarter that has just ended was the first to show a reversal of this trend—namely, a reduction in available cash and short-term money market investments. Who knows what will emerge from the quarter ending next week.